ROLE OF PLANNING AND RISK TOLERANCE AS INTERVENING CONSTRUCTS BETWEEN FINANCIAL WELL-BEING AND FINANCIAL LITERACY AMONG PROFESSIONALS

D Arpana,H.R Swapna

doi:10.32479/ijefi.10466

Abstract

Indian economy has seen various auxiliary and key changes in financial markets. While Indian economy is on development direction, there is an extensive spread realization among all in the financial range that for such development to be practical, a corresponding deepening of financial sector must precede. And, such developing is conceivable, just when people and families are financially literate. Financial literacy is low even in advanced economies with well-developed financial markets. Financial resilience is unquestionably a significant point for analysts, investors, consultants and personal financial planners. This research investigat6es the practice of financial planning among professionals. Financial Risk tolerance is a subjective and complex phenomenon and may diverge from individual to individual. This study aims to analyze the relationship among the constructs, study the role of Financial behavior and Financial literacy as a mediator or moderator between Propensity to planning and financial well-being and finally assesses Financial Literacy score across various demographic factors. Structural equation modeling technique was used to test the variables and the hypotheses. The outcome of the study is that respondents Propensity to plan & Risk taken seems to be statistically significant. Propensity to planning male respondents are dominating. With Regard to Risk taking ability female employees are more dominating. Financial literacy, Risk taken, Financial Behavior and Financial wellbeing range all items have strong positive relationship. it shows that all are interrelated. when exogenous variables such as propensity to planning antecedents is created impact on all factors like financial behavior and Financial wellbeing. When financial behavior enacted as mediator between propensity to planning and Financial wellbeing, it shows the mediator influences on these factors. Therefore, we can infer that there is a strong role of financial behavior on all items. Keywords: Financial Literacy, Risk, Financial Planning, Mediating and Moderating Variable. JEL Classification: G32 DOI: https://doi.org/10.32479/ijefi.10466

Highlights

IntroductionThere is an increasing conviction that an individual would need to turn out to be increasingly confident in future
Financial literacy has gradually become significant in the course of recent decades
In case of financial behavior enacted as mediator between propensity to planning and Financial wellbeing, it shows the mediator influences on these factors

Summary

Introduction

There is an increasing conviction that an individual would need to turn out to be increasingly confident in future. Increased competition and multifarious services in financial market make many people sick to adopt with the erudite choices they have (Balamurugan and Jambulingam, 2017). There are times of increased incomes followed by low or unusual or no income by any means Individuals must have essential abilities to settle on appropriate financial decisions to empower them to be more in charge of their own circumstances and have a protected financial future Education can play a critical role in outfitting the financial buyers with the key information required to pick among the bunch of products or services available in financial Markets. Financial literacy is an essential life skill to be sustaining in the Market (Soundaravalli and Jeyakumari, 2016)

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