Rational minds, Happy wallets: Exploring how Financial Behavior mediates financial knowledge and well-being
Main Article Content
Abstract
Purpose- The goal of this study is to find out how financial behavior affects the link between financial knowledge and personal financial health. In today's changing financial world, it's important to understand how your own financial decisions affect your long-term financial health. The goal of this study, called "Rational Minds, Happy Wallets," is to find out how people can turn their knowledge into good financial health through their actions. The results should help improve financial education methods and encourage people to make smart financial choices.
Design/methodology/approach – The analysis is based on primary data collected from 384 people who live in Kathmandu. We used the Partial Least Squares (PLS) method to look at the survey answers as part of Structural Equation Modeling (SEM).
Findings – The information for this study came from 384 people who live in Kathmandu. We used the Partial Least Squares (PLS) approach of Structural Equation Modeling (SEM) to look at the answers we got. The results show that how people handle their money is a critical link between their financial knowledge and their own financial well-being. People who understand money better tend to make better financial decisions, which leads to better financial health in the long run.
Originality/Value – This study adds to the body of knowledge by looking at how financial conduct affects the connection between financial knowledge and well-being in a developing economy using empirical analysis. In contrast to earlier studies that tend to examine these factors separately, this study adopts a unified model using PLS-SEM to uncover underlying behavioral patterns. By focusing on the urban population of Nepal, it delivers context-specific insights that are often missing in current academic work. The outcomes offer practical value for shaping more effective financial literacy initiatives and behavior-focused interventions in comparable economic environments.