FINANCIAL KNOWLEDGE , STRESS AND WELL BEING : MEDIATING EFFECT OF BEHAVIOUR AND QUALITY OF LIFE OF INVESTORS
Abstract
Purpose With the rapid changes and constant developments in the financial sector and the broader economy, it is important to understand whether people are equipped to effectively navigate the maze of financial decisions that they face every day. To provide the tools for better financial well-being, one must assess not only what people know but also what they need to know, and then evaluate the gap between those things. Financial knowledge, financial stress and behaviour are crucial elements for consumers to effectively participate in today’s social and economic life. Design/methodology/approach In this research, the key Indicators of Quality of life are identified along with Behavioural factors and the impact of Investors Knowledge on the Behaviour of Investors and well being is comprehensively examined, not only through the prism of economics but also through many other factors that give people overall satisfaction. Also study attempts to find out that whether financial stress impacts Quality of Life and subsequently financial well-being of investors. Path analysis has been performed using Structural Equation Modeling on the sample of 243 retail investors. Findings Study found that financial knowledge significantly impacts short term behaviour of Investors and have a great influence on well-being. Significant indirect relationship has been identified among Stress, Quality of Life and well-being of Investors. It has been shown that if enough emphasis is given on increment of financial knowledge and education, Financial Stress level of investors along with quality of life of individual can be amplified. Practical implications Findings emphasize on increment of financial Literacy by creating basic awareness of financial products and concept among individual to offer support for Financial Stress being faced by investors at various stages of life. Quality of life of individual can be amplified by providing them with adequate learning through programs which leads to overall financial satisfaction among investors.
Keyword : Financial Knowledge, Financial Awareness, Financial Well-Being , Financial Stress , Mediation Analysis, Structural Equation Modelling, Regression Estimates, Quality of Life, Financial Behaviour
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