Do Villagers’ Financial Socialization, Financial Literacy, Financial Attitude, and Financial Behavior Predict Their Financial Well-Being? Evidence from an Emerging India

Abstract

The present study examines the impact of family financial socialization theory (FFST) subjective constructs consisting of financial socialization (FS), financial literacy (FL), financial attitude, and financial behavior on peri-urban areas male villagers’ financial well-being (FWB) in an emerging economy. The United Nations Sustainable Development Goals (SDGs) 2030 also emphasized improving FWB, especially by achieving SDG-1, SDG-3, and SDG-10. Data from 429 male villagers belonging to villages in peri-urban areas were collected through a self-administered survey questionnaire by applying a purposive sampling technique. The study hypotheses were assessed by employing partial least squares structural equation modeling (PLS-SEM). Results show that male villagers’ financial behavior is most significantly determined by their financial attitude, followed by financial socialization (FS) and financial literacy (FL). Notably, financial behavior emerged as a major antecedent of male villagers’ financial well-being (FWB), followed by FS, financial attitude, and FL. Also, the impact of male villagers’ FL on their financial attitude is more significant than FS. This study provides a major theoretical contribution to the literature, being the first to examine the antecedents of male villagers’ FWB worldwide empirically. Also, this study offers important implications for the government, financial institutions, and financial advisors.