Factors Affecting Personal Financial Management Behaviors – The Case Of Iranian Youth

Document Type : Research Paper

Authors

1 Assistant Professor in Faculty of Financial Sciences, University of Kharazmi, Tehran, Iran,

2 Master of Finance, Faculty of Financial Sciences, University of Kharazmi, Tehran, Iran

Abstract

Personal financial management behavior mentions how a person reacts when encounters financial events. Decisions of a person in different conditions influence his present and future life as well as economy of society. This study is about personal financial management, and examining factors affecting personal financial management behaviors among Iranian youth is it's purpose. To do this, relationships among financial attitude, financial knowledge, external locus of control and financial management behaviors was examined. This study is a applied and descriptive research. Data gathering is based on questionnaire. The research model is structural equation modeling and examined by Partial Least Square (PLS) method. The findings suggest that, financial attitude and financial knowledge have statistically significant and positive effects on financial management behaviors. In addition, based on our third hypothesis, the moderated role of financial knowledge on the relationship between financial attitude and financial management behaviors is approved by results. The results do not support for the relationship between external locus of control and financial management behaviors and the indirect effect of external locus of control on the relationship between financial knowledge and financial management behaviors.

Keywords

References

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History

  • Receive Date: 16 April 2017
  • Revise Date: 23 December 2018
  • Accept Date: 24 December 2018

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