Cognitive and Non-Cognitive Factors as Predictors of Financial Wellbeing Mediated through Financial Management Behavior in Pakistan Financial Management Behavior and Financial Wellbeing

Abstract

Financial wellbeing being a key for the mental and physical health of an individual may cause stress and low productivity. This study aimed to examine the effect of cognitive and non-cognitive factors on financial wellbeing mediated through financial management behavior in Pakistan. A cross-sectional survey method based on a quantitative strategy was used to collect the data. In all, 306 respondents comprising of university students and employees from different business organizations provided the feedback through a selfadministered questionnaire. Multiple regression techniques and the macro processes by Andrew Hayes were used through SPSS 25 to test the multiple hypotheses. Results revealed the significant impact of optimism, mental budgeting, deliberative thinking, financial literacy, self-control, on financial management behavior and financial wellbeing, and financial management behavior has a significant mediating role between cognitive and non-cognitive factors and financial wellbeing. This study filled the knowledge gap by examining the mediating role of financial management behavior between cognitive and non-cognitive factors and financial wellbeing, which has not been examined afore. Keywords: Optimism, Mental Budgeting, Deliberative Thinking, Self-control, Financial Literacy, Financial Management Behavior, Financial Wellbeing