How Knowledge and Financial Self-Efficacy Moderate the Relationship between Money Attitudes and Personal Financial Management Behavior

Abstract

This study finds the impact of money attitudes on the personal financial management behavior and check the moderating effect of financial knowledge and financial self-efficacy on their relationship. The sample for this research was young adults (University students) who were also employed. From five universities where two universities were from the public sector  and three were from private sector 500 respondents were selected through purposive sampling. Hierarchal Regression and factor analysis were employed to derive the results. The following are the results which are generated from this research study. Money attitudes and Financial Knowledge have a significant positive impact on the personal financial management behavior of young adults, and financial knowledge has a positive moderating impact on the relationship of money attitudes & personal financial management behavior. It was found that 20.9% Personal Financial Management Behavior is explained by money attitudes at significance level of 5 %. Financial Self-efficacy has a positive impact on the personal financial management behavior and it has positive moderating impact on the relationship of money attitudes & personal financial management behavior.