The antecedents and consequence of financial well-being: a survey of parliamentarians in Ghana

Abstract

Purpose

This paper examines the effect of financial self-efficacy and financial behaviour on financial well-being and ascertains whether financial well-being affects an individual's level of happiness in life. The authors also show the mediating role of financial behaviour in the relationship between self-efficacy and financial well-being.

Design/methodology/approach

The survey method of research was adopted using questionnaires as the principal means of data collection. The hypotheses of the study were tested on a rich data set from a sample of 210 parliamentarians in Ghana using the structural equation modelling technique.

Findings

The results show that individuals with high level of financial self-efficacy practise responsible financial behaviour and find financial behaviour to be a good predictor of financial well-being. The authors also find financial behaviour to mediate between financial self-efficacy and financial well-being and conclude that well-being impacts positively on happiness.

Practical implications

Findings of this study demonstrate that the financial well-being of an individual has important implications on the quality of life and an important way of improving well-being is to promote responsible financial behaviour.

Originality/value

This study employs the subjective measure of financial well-being in its analysis and also examines an outcome of financial well-being.

Citation

Oquaye, M., Owusu, G.M.Y. and Bokpin, G.A. (2022), "The antecedents and consequence of financial well-being: a survey of parliamentarians in Ghana", Review of Behavioral Finance, Vol. 14 No. 1, pp. 68-90. https://doi.org/10.1108/RBF-12-2019-0169