FACTORS INFLUENCING PERSONAL FINANCIAL MANAGEMENT BEHAVIOR AMONG WOMEN EMPLOYEES IN KATHMANDU VALLEY

Abstract

This study explores the factors influencing personal financial management behavior among women employees in Kathmandu Valley, Nepal. The main objective of this study was to examine the impact of financial knowledge, financial attitude, financial self efficacy, self-control, and external locus of control on personal financial management behaviors. A mixed-method approach, including both quantitative and qualitative data collection methods, was employed. A structured questionnaire was administered to 385 women employees to gather quantitative data, and thematic analysis was conducted on qualitative interviews with a subset of participants. Correlation analysis reveals significant positive relationships between financial knowledge, financial attitude, financial self-efficacy, and self-control with personal financial management behavior. Conversely, an external locus of control is negatively associated with effective financial management. The regression analysis revealed that financial knowledge, financial attitude, and financial self-efficacy have a significant positive impact on personal financial management behavior, while self-control also positively influences financial behavior, albeit to a lesser extent. Conversely, an external locus of control was found to have a negative effect on financial management practices. Regression analysis confirmed that financial knowledge, financial attitude, financial self-efficacy, and self-control are significant predictors of personal financial management behavior, with an external locus of control showing a detrimental effect. These findings highlight the importance of financial literacy and positive financial attitudes in fostering effective financial management. The study suggests that financial education programs should focus on enhancing these key areas while addressing external locus of control beliefs. Future research could expand the scope to include diverse regions across Nepal, all genders, and explore the impact of technological and psychological factors on financial management behavior.