The effect of financial literacy and attitude towards money on financial well-being with the mediating role of financial ethics

Subject Areas :

matin pirayesh rad ¹ , Mojgan Safa ^{2 *} , زهره حاجیها ³ , Reza Golami Jamkarani ⁴

1 - Department of accounting, Qom Branch, Islamic Azad University, Qom, Iran
2 - Department of accounting Qom Branch, Islamic Azad University, Qom, Iran
3 - استادیار دانشگاه آزاد واحد تهران شرق
4 - Department of accounting, Qom Branch, Islamic Azad University, Qom, Iran

Received: 2022-10-02 Accepted : 2024-03-12 Published : 2025-09-06

Keywords: Financial literacy, Attitude towards Money, Financial ethics, Financial Well-bein,

Abstract :

Financial education increases financial knowledge and helps people behave differently to make better financial decisions for themselves or their families. Also, financial literacy and attitudes toward money have a huge impact on financial well-being, and this is a concept that is especially important for people who are starting to develop their own financial habits. Therefore, the purpose of this article is to investigate the effect of financial literacy and attitude towards money with the mediating role of financial ethics on financial well-being. This study uses a mixed approach (qualitative and quantitative) and tool development (Delphi). The number of sample members of Cochran's formula for unlimited society was used and the data was 398 people through a questionnaire among managers, experts, students and ordinary people living in Tehran and in the time period of 1400. Structural equation modeling method and PLS software were used to test the hypotheses. The results showed that financial literacy and attitude towards money have a positive effect on financial well-being. Also, financial literacy and attitude towards money with the mediating role of financial ethics have an effect on financial well-being. A positive view of financial well-being may reduce stress and this can affect people's academic, personal, and social growth. In addition, creating a positive attitude towards money, which includes creating a habit of saving, tracking expenses, is a strong predictor of financial well-being, and people with a level of financial literacy tend to show more favorable financial ethics and behaviors.