Factors and Determinants of Financial Behaviors That Undermine Financial Well-Being: A Qualitative Study

Abstract

This paper aims to identify the factors, their determinants, and indicators contributing to financial behaviors that may be detrimental to people's financial well-being. A qualitative methodology was employed, involving financial professionals and members of the general population. The theory of planned behavior was inductively used as an analytical framework. The results suggest that detrimental financial behaviors are shaped by (1) attitudes such as financial apprehension, rigid financial mindsets, and lack of awareness; (2) social influences including relational pressure, sociocultural norms, geographic context, social media, and marketing; (3) perceived behavioral control factors such as limited knowledge, environmental conditions, financial ecosystem, and insufficient education; and (4) ingrained financial habits, including avoidance, cognitive biases, overconsumption, and lifestyle orientation. The originality of this research lies in the new insights it offers into the cognitive and psychological processes shaping financial behaviors. The findings interest stakeholders such as government bodies, financial education developers, researchers, and regulators.