Exploring The Mediating Role of Financial Capability in The Relationship Between Financial Knowledge and Financial Well-Being: A Conceptual Framework.

Authors

  • Ramadhan Harahap Universitas Pembangunan Panca Budi
  • Sri Rahayu Universitas Pembangunan Panca Budi
  • Maudy Lestari Universitas Pembangunan Panca Budi

Keywords:

Financial Knowledge, Financial Capability, Financial well-being, Low-income Entrepreneurs.

Abstract

This conceptual study aims to investigate the mediating effect of financial capability on the relationship between financial knowledge and financial well-being. Employing a cross-sectional design, data will be collected from a sample of low-income entrepreneurs and non-entrepreneurs, ranging from 100 to 200 participants. The research focuses on three key constructs: financial knowledge, financial capability, and financial well-being. Financial knowledge will be assessed through measures of financial literacy, education, and awareness; financial capability through access to financial services, financial behaviors, and attitudes; and financial well-being through financial security, freedom, and the ability to meet financial goals. The expected findings suggest that financial knowledge will significantly enhance financial capability, which, in turn, will positively influence financial well-being. The study anticipates that financial capability will mediate the relationship between financial knowledge and financial well-being, indicating that improved financial knowledge leads to better financial behaviors and access to services, ultimately enhancing overall financial health. These findings aim to provide a comprehensive understanding of the interplay between financial knowledge and capability in influencing financial well-being, highlighting the necessity for financial education programs that foster both knowledge and capability, particularly among low-income groups.

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Published

2024-08-20

How to Cite

Harahap, R., Rahayu, S., & Lestari, M. (2024). Exploring The Mediating Role of Financial Capability in The Relationship Between Financial Knowledge and Financial Well-Being: A Conceptual Framework. 1St International Conference Epicentrum of Economic Global Framework, 1(1), 508–515. Retrieved from https://proceeding.pancabudi.ac.id/index.php/ICEEGLOF/article/view/142

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