Mediating Effect of Financial Behaviour on Financial Planning and Financial Well-Being

Abstract

The on-going analysis investigates interdependencies between financial planning and financial well-being through a mediating role as exercised by financial behaviour. It successfully highlighted the role of proper planning and favourable behaviours, allowing individuals to make wise decisions to improve their financial well-being. Investors residing in the main cities of the National Capital Region, such as Delhi, Gurugram, Faridabad, Noida and Ghaziabad, made up the study’s target population. A thorough questionnaire was used to gather primary data, and convenience sampling was used to select 750 investors as the sample size. The study’s conclusions were derived using a variety of analytical techniques, such as descriptive analysis, parametric tests, reliability tests and correlation analysis, all carried out with SPSS 23 and Smart PLS 3.0. The findings of the research indicate that financial planning (FP) significantly influences financial well-being (FWB) and that financial behaviour (FB) partially mediates this influence reported. It was observed that FB mediates 32.42% of the FP-FWB relationship. Effective financial planning encourages favourable financial behaviour, contributing to overall improvement in financial well-being. These findings would, hence, imply that FP and FB promote greater financial satisfaction and security. This is the pioneering research conducted to investigate the relation between financial planning and financial well-being, with financial behaviour being the mediator.

Keywords: Financial Planning, Financial Well-Being, Financial Behaviour, Mediating Effect

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