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Original scientific paper

https://doi.org/10.17535/crorr.2021.0003

Does financial behavior mediate the relationship between self-control and financial security?

Marija Vuković orcid id orcid.org/0000-0002-5383-6587 ; University of Split, Faculty of Economics, Business and Tourism
Snježana Pivac ; University of Split, Faculty of Economics, Business and Tourism


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Abstract

People have different financial behavior depending on their psychological characteristics, which can reflect their financial security. Self-control is also an important predictor of financial security. People with greater self-control are more likely to save money and less likely to get into debt. Therefore, they are more secure and satisfied with their financial situation. This paper explores whether good self-control directly affects financial security or if its impact comes indirectly through good financial behavior. For the purposes of the research, a survey analysis was designed and applied to a sample of 494 respondents. Structural equation modeling was used for testing the research hypothesis. The results confirmed that there is a significant mediating effect of financial behavior on the relationship between self-control and financial security. The research contributes to a better understanding of financial behavior predictors among individuals with different psychological characteristics. Future research  should also include testing for differences between various demographic groups of people in the impact of self-control on financial behavior and security.

Keywords

financial behavior; financial security; self-control; structural equation modeling

Hrčak ID:

259471

URI

https://hrcak.srce.hr/259471

Publication date:

29.6.2021.

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