Vol (14), Issue (1), 2021

Impact of Financial Attitude, Financial Literacy and Parental Financial Socialization on Prudent Financial Management Practices: A Moderating Effect of Financial Well-Being among the Youth of Pakistan

Syed Hamza Farooq, Syed Zulfiqar Ali Shah and Shahid Rasheed

International Islamic University, Islamabad

Abasyn University, Peshawar

This study intends to explore the effect of Financial Attitude, Financial Literacy, and ParentalFinancial Socialization on the prudent financial management practices, amid the youth of Pakistanwith moderating effect of Financial Well-Being. The population consist over the youth of Pakistanfor which the data was collected through an online questionnaire. The study adopted thequantitative approach for which the data from 450 respondents was collected. Subsequently, thedata was analyzed with the help of Smart PLS. The results indicated that Parental FinancialSocialization, Financial Attitude, and Financial Literacy have a significant and positive relationshipwith Prudent Financial Management Practices. However, Financial Well-Being does not havesignificant moderating effect with Parental Financial Socialization, Financial Literacy, and FinancialAttitude. The results further highlighted serious concerns of the effectiveness of Financial Well-Being towards improving youth capabilities in managing their financial affairs in the marketprudently. It shows that challenges faced by the youth in the country market to strengthen thefinancial well-being of an individual by guiding them thoroughly, enhance the effectiveness, andencompass the right elements pertains to financial well-being to ensure today's young Pakistaniability to apply that in the real market place and have full financial freedom
Keywords: Financial Attitude, Parental Financial Socialization, Financial Literacy, Prudent FinancialManagement Practices, Financial Well-Being




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