Investigating the effect of electronic financial literacy and financial confidence on the financial well-being of accounting students with the mediating role of financial behavior
Subject Areas : Financial and Behavioral Researches in Accounting
nassim shahmoradi
1
,
Elham Abooei Mehrizi
2
,
Somayeh Shirgholami
3
1 -
2 - PhD student , Department of accounting, Yazd Branch, Islamic Azad University, Yazd, Iran
3 - Master's degree, Department of accounting, Yazd Branch, Islamic Azad University, Yazd, Iran
Keywords: Electronic financial literacy, Financial behavior, Financial well-being, Financial certainty, Accounting students in Yazd,
Abstract :
Background and Purpose: This study examines the interplay between electronic financial literacy (EFL), financial confidence, and financial well-being among Yazd accounting students, considering the mediating role of financial behavior. EFL refers to the knowledge and skills required to effectively use digital tools for financial management, such as online banking, budgeting apps, and financial investment platforms. Accounting students often encounter complex financial systems in their education and future careers. Mastery of EFL can improve their financial decision-making and adaptability to modern financial technologies. Financial confidence is the self-assuredness individuals have regarding their financial knowledge and ability to manage finances effectively. Its impacts on students include enhancing proactive engagement with financial matters and reducing stress related to financial uncertainties. Financial well-being is a state where individuals feel secure and capable of meeting current and future financial obligations while enjoying life. Financial behavior is the actual practices and habits individuals adopt to manage their finances, such as saving, budgeting, investing, and spending.
Methodology: The study is a survey application. Structural equation modeling (SEM) was conducted using PLS software, while SPSS software was employed for providing complementary insights into the data. The statistical population of this research consisted of Yazd accounting students, and based on Cohen's formula, 195 students responded to the questionnaire. The sampling method in this research was stratified random sampling, and data were collected by field method. Respati's (2023) questionnaire was used. The questionnaire consists of two parts. The first part is devoted to demographic questions. The second part is related to measuring the variables of electronic financial literacy, which consists of 13 questions; financial confidence, which consists of 3 questions; financial well-being, which consists of 5 questions; and financial behavior, which consists of 3 questions.
Findings: The results revealed the following key relationships: EFL positively influenced financial behavior by equipping students with the knowledge and skills needed to manage their finances effectively, and financial behavior emerged as a significant predictor of financial well-being, highlighting the importance of planned financial actions in achieving economic stability. Financial behavior mediated the relationship between both EFL and financial well-being, as well as financial confidence and financial well-being. Financial confidence significantly impacted both financial behavior and financial well-being, underscoring its role in promoting prudent financial decisions.
Discussion: The findings highlight the pivotal role of EFL in fostering responsible financial behaviors, particularly among accounting students who are future professionals in the financial sector and underline the need for practical interventions to integrate these skills into their professional training. Moreover, financial confidence was identified as a critical factor influencing students' ability to implement their financial knowledge effectively. These results align with previous studies (e.g., Respati et al., 2023; Aulia et al., 2023) that emphasize the integration of financial literacy programs into educational curricula. Policymakers and educational institutions are encouraged to design targeted financial education programs that incorporate digital tools to enhance EFL and financial confidence among students. Universities could develop workshops on digital financial tools and confidence-building exercises and promote financial wellness programs to support students in adopting positive financial behaviors. The findings of this study highlight the significant interplay between electronic financial literacy, financial confidence, and financial well-being, with financial behavior serving as a vital mediator. EFL enhances students’ ability to navigate digital financial tools, promoting better decision-making and financial management, which directly contributes to their overall well-being. Financial confidence, characterized by trust in one’s financial knowledge and decision-making abilities, was also shown to positively influence financial well-being, primarily by empowering students to take proactive financial actions. The mediating role of financial behavior underscores that knowledge and confidence alone are insufficient. Translating these attributes into actionable habits, such as budgeting and saving, is key to achieving financial stability. These results are consistent with behavioral finance theories that stress the importance of habits in bridging the gap between knowledge and outcomes. Practically, these findings call for universities to incorporate digital finance training into curricula and establish programs to boost financial confidence and behavior among students. This study underscores the importance of enhancing EFL and financial confidence to improve financial well-being. Financial behavior acts as a bridge connecting these variables, providing actionable insights for educators and policymakers. By fostering a robust foundation of financial knowledge and confidence, institutions can empower students to achieve long-term financial stability.
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