Exploring financial well-being of working professionals in the Indian context

Abstract

Attainment of financial well-being is vital for individuals. Financial well-being further leads to satisfaction and happiness, which results in the overall well-being of an individual. Financial behavior and well-being assume greater importance in crises such as the COVID-19 pandemic. This study tests how working professionals’ financial knowledge and attitude in a developing country relate to their financial well-being. The emphasis of the study is on determining the mediating effects of financial behavior. The study finds that financial knowledge alone may not result in an individual’s financial well-being, and the relationship is mediated by financial behavior. This implies that acquiring knowledge and a positive financial attitude are important in the quest to attain financial well-being, but adopting healthy financial behavior is most important.