Antecedents to Responsible Financial Management Behavior among Young Adults: The Moderating Role of Financial Risk Tolerance

Ameenullah Aman; Irshad Ali Khan

doi:10.62019/at64tn08

Authors

Ameenullah Aman Faculty of Management Sciences Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Karachi Pakistan.
Irshad Ali Khan Faculty of Management Sciences Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Karachi Pakistan.

DOI:

https://doi.org/10.62019/at64tn08

Abstract

The main objective of this study is to investigate the impact of financial knowledge, financial attitude, and locus control impact on financial management behavior in the context of Pakistan. The data has been collected in a quantifiable manner and PLS-SEM analysis has been conducted using SmartPLS version 3.2.8. In addition, the results have showed that financial attitude has a positively significant effect on financial management behavior while financial knowledge has positively significant effect on financial attitude. Lastly, locus of control has positively significant effect on financial management behavior. However, some of the recommendations for managers presented in this study are as follow: Firstly, Public policymakers and educational institutions can devise programs to improve financial literacy and promote positive financial attitudes. Individuals' financial health can benefit from these services, which come in the form of basic courses and seminars. Furthermore, they can assist young adults in developing financial management skills and promoting positive financial attitudes that emphasize the importance of saving rather than spending money. This is particularly critical in a developing country like Pakistan, where savings rates are poor.

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