Financial self-efficacy of consumers: A review and research agenda

Abstract

As an essential psychological construct, financial self-efficacy (FSE) has garnered considerable attention in the field of consumer finance and demonstrated its influence on financial outcomes. FSE has been regarded as a learned belief rather than an innate quality that can be nurtured over time. Notwithstanding the increasing significance of understanding consumers' FSE, this particular line of literature has not been examined as an independent research domain. Accordingly, this framework-based review comprehensively represents the current state of literature on FSE by covering 64 articles published between 1999 and 2023, compiled based on the Scientific Procedures and Rationales for Systematic Literature Reviews protocol and the theory–context–characteristics–methodology framework. Based on the review findings, an integrated model of FSE is proposed, summarizing the study frameworks and constructs employed as antecedents, modifiers, and outcomes in investigating consumer's FSE. Further, the review has identified certain areas that were previously overlooked. As a result, a research agenda has been developed, consisting of 22 research questions and four research objectives, which will articulate the direction for future research. Finally, the paper concludes, signifying the contribution and practical implications for researchers, families, practitioners, and society in selecting the most effective measures for improving consumers' FSE.