The Psychological Factors Affecting Personal Financial Management Behavior among Young Adults
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Abstract
The purpose of personal financial management is to manage finance for prosperity. As per Joo (2008) Personal financial conduct that is efficient is linked to financial well-being while failing to manage personal resources can have serious long-term implications. Therefore, there becomes a great need for adequate financial management behavior and to identify the factors affecting them to avoid bankruptcy and chronic debt, low savings, and have a better retirement life and a healthy relationship with the family.
Description
Personal financial management behavior is a major concern since empirical research has shown that it is associated with favorable life outcomes, whereas failing to manage personal finance has a negative outcome. As a result, it is vital to research and determine the psychological factors underlying this behavior. Understanding and being aware of such aspects may assist people in making more responsible and prudent financial decisions.