Abstract
The purpose of this study is to identify the importance of financial competency as a psychological resource, rather than the size of income or wealth, in influencing psychological well-being. And to verify the mediating effect of self-efficacy in the relationship between financial competency and psychological well-being. To achieve this, an analysis was conducted on 283 economically active adults to examine the effect of financial management competency on psychological well-being mediated by self-efficacy. Economic conditions were included as control variables to compare the effect sizes of key variables. Statistical analyses using IBM SPSS 25 and SPSS PROCESS Macro v4.0 revealed that self-efficacy partially mediated the relationship between financial competency and psychological well-being. Among the three components of financial management competency, self-efficacy fully mediated the relationship between financial management attitude and psychological well-being, while it partially mediated the relationship with financial management skills. Furthermore, Hayes’ bootstrap analysis confirmed that the indirect effect of financial competency on psychological well-being through self-efficacy was significantly greater than the indirect effect of economic conditions. The findings of this study can serve as foundational data for a deeper understanding of the interaction between financial competency, psychological well-being, and self-efficacy. Furthermore, the study highlights the necessity of psychological support aimed at enhancing financial competency and self-efficacy to promote individuals' psychological well-being.
Published Version
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