The Relationship between Financial Self-Efficacy and Financial Well-Being of College Students

Glenn Bonie R. Elisan; Aisa B. Aquino; Jesse O. Niepes; Quennie Mae M. Magarao

doi:10.55927/melas.v2i1.13828

Authors

Glenn Bonie R. Elisan University of Mindanao
Aisa B. Aquino University of Mindanao
Jesse O. Niepes University of Mindanao
Quennie Mae M. Magarao University of Mindanao

DOI:

https://doi.org/10.55927/melas.v2i1.13828

Keywords:

Financial, College Student, Financial Self-Efficacy, Financial Well-Being, Financial-Health

Abstract

This research explores the relationship between college students' financial well-being and financial self-efficacy, contributing to the understanding of how self-confidence in financial management influences overall financial health. A quantitative methodology was employed, utilizing an online survey distributed to 150 tertiary students through social media, with data collected on the two variables using Likert scales. The investigation revealed a moderate positive correlation (path coefficient of 0.348, p < 0.001) between the two constructs, indicating that Better financial well-being is linked to stronger financial self-efficacy. According to these results, increasing financial self-efficacy may help financial education initiatives aimed at students

Downloads

Download data is not yet available.

References

Arofah, A. A. (2019). Financial Literacy, Self-Efficacy, and Financial Behaviour of college students. IJPTE International Journal of Pedagogy and Teacher Education, 3(2), 129–138.

Anggono, A., Barus, A., Nasution, S. A., Astuty, F., & Tarwiyah, T. (2024). Pengaruh Self-Efficacy terhadap perilaku keuangan mahasiswa. Owner, 8(3), 2968–2980.

Azer, I., & Mohamad, S. A. (2018). Exploring Financial Management Practices and Problems among Students. International Journal of Academic Research in Business and Social Sciences, 8(12).

Benson-Egglenton, J. (2018). The financial circumstances associated with high and low wellbeing in undergraduate students: a case study of an English Russell Group institution. Journal of Further and Higher Education, 43(7), 901–913. https://doi.org/10.1080/0309877x.2017.1421621

Chaity, N. S., Kabir, S. B., Akhter, P., & Bokhari, R. P. (2024). How Financial Literacy Impacts Financial Well-Being: The influence of financial and Technical Efficacy. International Journal of Economics and Financial Issues, 14(2), 207–217. https://doi.org/10.32479/ijefi.15806

Coats, J. C., & Bajtelsmit, V. L. (2024). New insights into improving financial well-being. SSRN Electronic Journal.

Creswell, J. W., & Creswell, J. David. (2023). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. In psycnet.apa.org (Sixth Edition). SAGE Publications, Inc

De Gracia, D. V. A., & Campos, K. P. (2023). Impact of Entrepreneurial Identity Aspiration and Self-Efficacy towards Entrepreneurial Behavior of the Working Class of Davao City. Journal of Economics Education and Entrepreneurship, 4(1), 20.

Dare, S. E., Van Dijk, W. W., Van Dijk, E., Van Dillen, L. F., Gallucci, M., & Simonse, O. (2022). How executive functioning and financial self-efficacy predict Subjective Financial Well-Being via positive financial behaviors. Journal of Family and Economic Issues, 44(2), 232–248. https://doi.org/10.1007/s10834-022-09845-0

Dewi, I. G. A. R. P. (2022). Financial self-efficacy mediates the influence of financial literature and attitude on financial management behavior. International Journal of Social Science, 2(2), 1475-1482.

Diamantopoulos, A., & Winklhofer, H. M. (2001). Index Construction with Formative Indicators: An Alternative to Scale Development. Journal of Marketing Research, 38(2), 269–277. https://shorturl.at/dyBP5

Drolet, A. L., & Morrison, D. G. (2001). Do We Really Need Multiple-Item Measures in Service Research? Journal of Service Research, 3(3), 196–204. https://doi. org/10.1177/109467050133001

Fosnacht, K., & Calderone, S. M. (2017). Undergraduate Financial Stress, Financial Self-Efficacy, and Major Choice: A Multi-Institutional Study. Journal of Financial Therapy, 8(1).

Hajjar, S.E. (2018). STATISTICAL ANALYSIS: INTERNAL-CONSISTENCY RELIABILITY AND CONSTRUCT VALIDITY.

Heckman, S., Lim, H., & Montalto, C. (2014b). Factors Related to Financial Stress among College Students. Journal of Financial Therapy, 5(1).

Hayes, A. (2023, March 23). How Stratified Random Sampling Works, with Examples. Investopedia.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2014). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.

Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186–192.

Jamovi. (2019). jamovi - Stats. Open. Now. Jamovi.org.

Limbu, Y. B., & Sato, S. (2019). Credit card literacy and financial well-being of college students. International Journal of Bank Marketing, 37(4), 991–1003.

Lim, H., Heckman, S.J., Montalto, C.P., & Letkiewicz, J.C. (2014). Financial Stress, Self-Efficacy, and Financial Help-Seeking Behavior of College Students. Behavioral & Experimental Finance eJournal.

Litob, N. M. E. G., Sanchez, N. J. L., & Gabule, N. D. S. (2024). SELF-EFFICACY AND SAVING BEHAVIOR AMONG STUDENTS IN a LOCAL COLLEGE. EPRA International Journal of Economics Business and Management Studies, 43–47.

Lone, U. M., & Bhat, S. A. (2022). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. Journal of Financial Services Marketing, 29(1), 122–137.

Mindra., Rachel, Musa, Moya., Linda, Tia, Zuze., Odongo, Kodongo. (2017). Financial self-efficacy: a determinant of financial inclusion. International Journal of Bank Marketing, 35(3):338-353. doi: 10.1108/IJBM-05-2016-0065

Moore, A., Nguyen, A., Rivas, S., Bany-Mohammed, A., Majeika, J., & Martinez, L. (2021). A qualitative examination of the impacts of financial stress on college students’ well-being: Insights from a large, private institution. SAGE Open Medicine, 9, 205031212110181.

Nguyen, H., & Hollister, D. (2016). Financial SelfEfficacy Scale: Development And Validation Of A Measurement Tool A Dissertation Submitted To The Faculty Of The Graduate School Of The University Of Minnesota

Norvilitis, J. M., & Linn, B. K. (2021). The role of Student Debt and Debt Anxiety in College Student Financial Well-Being. Journal of Student Financial Aid, 50(3). https://doi.org/10.55504/0884-9153.1721

Obenza, B. N., Cuaresma, N. B. G., Carandang, Y. G. D., Dalugdug, L. J. S., Resus, K. S. M., Jumamoy, B. C. A., Mamon, P. a. T., & Chi, K. C. Y. (2024). The Mediating Effect of Financial Self-Efficacy on Financial Behavior and Financial Well-Being of College Students in Region XI. American Journal of Economics and Business Innovation, 3(1), 21–30.

Obenza, B., & Obenza, D. M. N. (2024). Assessing the Mediating Role of Life Satisfaction in the Nexus Between Financial Behavior and Financial Well-being. Journal of Economics, Innovative Management and Entrepreneurship, 2(3).

Obenza, B., Sandico, A. V., Solis, A. J., Alaba, J. M., Majo, N. R., Serios, R., ... & Obenza-Tanudtanud, D. M. (2024). Financial Management Behavior and Financial Well-Being of DepEd Teachers as Mediated by Financial Self-Efficacy. Obenza, BN., Sandico. AVP, Solis,. AJD, Alaba, JMG, Majo,. NRC, Serios, RN, Priego, EM, Janopol,. CK, & Obenza-Tanudtanud, DMN (2023). Financial Management Behavior and Financial Well-Being of Deped Teachers as Mediated By Financial Self-Efficacy. British I.

Obenza, B., Tabac, C. E., Estorba, D. R., Baring, A., Rizardo, J. P., Badayos, C. J., Zaragoza, A. P., & Cruz, P. S. D. (2024). Personality Traits and Financial Well-Being of College Students in Davao City. International Journal of Applied Research and Sustainable Sciences, 2(1), 41–56.

Obenza, B., Torrefranca, J. P., Amarilla, J. D., Pandamon, J., Encarnacion, S., Getalado, G., & Azis, A. (2024). Personality Traits and Financial Management Behavior of University Students. Obenza, B., Torrefranca, JP, Amarilla, JD., Pandamon, J.., Encarnacion, S.., Getalado, G.., & Azis, AH.(2024). Personality Traits and Financial Management Behavior of University Students. International Journal of Business and Applied Economics, 3(1), 1-20.

Oquaye, M., Owusu, G. M. Y., & Bokpin, G. A. (2020). The antecedents and consequence of financial well-being: a survey of parliamentarians in Ghana. Review of Behavioral Finance, 14(1), 68–90. https://doi.org/10.1108/rbf-12-2019-0169

Oviedo, H.C., & Campo-Arias, A. (2005). Metodología de investigación y lectura crítica de estudios Aproximación al uso del coeficiente alfa.

Prawitz, A. D., Garman, E. T., Sorhaindo, B., O'Neill, B., Kim, J., & Drentea, P. (2006). InCharge Financial Distress/Financial Well-Being Scale [Database record]. APA PsycTests

Richard, G., Netemeyer., Dee, Warmath., Daniel, Fernandes., John, G., Lynch. (2018). How am I doing? Perceived financial well-being, its potential antecedents, and its relation to overall well-being.. Journal of Consumer Research, 45(1):68-89. doi: 10.1093/JCR/UCX109

Ringle, Christian, M., Sven, Becker, & Jan-Michael. (2022). SmartPLS 4. Oststeinbek: SmartPLS. Smartpls. com. https://www.smartpls.com/documentation/ algorithms-and-techniques/bootstrapping

Roll, S., Kondratjeva, O., Bufe, S., Grinstein-Weiss, M., & Skees, S. (2021). Assessing the Short-Term stability of Financial Well-Being in low- and Moderate-Income households. Journal of Family and Economic Issues, 43(1), 100–127. https://doi.org/10.1007/s10834-021-09760-w

Rufaidah, M., & Setiyono, W. P. (2023). Exploring the role of family financial education and lifestyle on financial management Behavior: The Mediating Effect of Financial Self-Efficacy. Indonesian Journal of Public Policy Review, 22. https://doi.org/10.21070/ijppr.v22i0.1310

Samuel, L., Swift., Zinzi, Bailey., Adina, Zeki, Al, Hazzouri. (2019). Improving the Epidemiological Understanding of the Dynamic Relationship Between Life Course Financial Well-Being and Health. Current Epidemiology Reports, 6(1):28-33. doi: 10.1007/S40471-019-0181-4

Sang, N. M. (2021). Financial well-being of Vietnamese students. Investment Management and Financial Innovations, 18(4), 355–365.

Santos, P. M. D., & Cirillo, M. Â. (2021). Construction of the average variance extracted index for construct validation in structural equation models with adaptive regressions. Communications in Statistics: Simulation and Computation, 52(4), 1639–1650.

Santos, M. C. J., Magramo, C. S., & Oguan, F. (2014). ESTABLISHING THE RELATIONSHIP BETWEEN GENERAL SELF- EFFICACY AND SUBJECTIVE WELL-BEING AMONG COLLEGE STUDENTS.

Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability. International Journal of Behavioral Development, 37(4), 287–297.

Singh, D., & Malik, G. (2022). A systematic and bibliometric review of the financial well-being: advancements in the current status and future research agenda. International Journal of Bank Marketing, 40(7), 1575–1609.

Singh, D., & Malik, G. (2022). A systematic and bibliometric review of the financial well-being: advancements in the current status and future research agenda. International Journal of Bank Marketing, 40(7):1575-1609. doi: 10.1108/ijbm-06-2021-0238

Shobha, T. S., & Chakraborty, S. (2017). Psychological Factors Contributing to the Financial Well-Being of an Individual : A Review of Empirical literature. Indian Journal of Finance, 11(10), 51.

Surya, N., & Evelyn, E. (2023b). Pengaruh Literasi Keuangan dan Financial Self-Efficacy terhadap Risky Credit Behaviour dalam Penggunaan PayLater. Jurnal Manajemen Dan Keuangan, 12(1), 37–60. https://doi.org/10.33059/jmk.v12i1.5825

Taber, K. S. (2017). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education, 48(6), 1273–1296. https://doi.org/10.1007/s11165-016- 9602-2

Tran, A. G. T. T., Lam, C. K., & Legg, E. (2018). Financial stress, social supports, gender, and Anxiety during College: A Stress-Buffering Perspective. The Counseling Psychologist, 46(7), 846–869.

Ursachi, G., Horodnic, I. A., & Zait, A. (2015). How Reliable are Measurement Scales? External Factors with Indirect Influence on Reliability Estimators. Procedia Economics and Finance, 20, 679–686. https:// doi.org/10.1016/s2212-5671(15)00123-9

Vallespin, M. R., Bodiongan, J. K., Bingil, A. K., Estoque, K., Galicano, R. M., Jamila, K. R., Lawi, A., Manuel, E., Sayson, J. N., & Soler, J. (2024). Empowering Tomorrow’s Financiers: Unveiling the Link Between Financial Knowledge and Financial Well-being among Grade 12 ABM Students in a Private Senior High School in Cagayan de Oro City, Philippines. SSRN Electronic Journal.

Xu, X., & Rashid, I. M. A. (2023). Financial Literacy, Financial Stress, Financial Anxiety, Financial Self-Efficacy and Financial Emotional Well-Being among University Students in Malaysia. International Journal of Academic Research in Business and Social Sciences, 13(2).

Zemtsov, A. A., & Osipova, T. Y. (2016). Financial Wellbeing as a type of Human Wellbeing: Theoretical review. the European Proceedings of Social & Behavioural Sciences.

백은영. (2004). 재정적 스트레스 및 재정문제에 영향을 미치는 요인 분석 -미국 대학생을 중심으로-.