Influence of Financial Behaviour on Financial Satisfaction and Financial Wellbeing

The connection between financial behaviour, financial satisfaction, and financial wellbeing among salaried individuals attracts serious research interest. It specifically examines whether financial satisfaction mediates the influence of financial behaviour on financial wellbeing. A cross-sectional survey was conducted among salaried individuals using a structured questionnaire. PLS-SEM was employed using SmartPLS to analyze the hypothesized relationships among the constructs. Outcome of the analysis show that financial behaviour significantly predicts financial satisfaction, and financial satisfaction, in turn, exerts a strong positive effect on financial wellbeing. The direct relationship between financial behaviour and financial wellbeing was found to be non-significant. However, the mediation analysis revealed a significant indirect effect, confirming that financial satisfaction fully mediates the relationship between financial behaviour and financial wellbeing. These findings highlight the critical role of financial satisfaction in enhancing the financial wellbeing of salaried individuals. Efforts to promote financial wellbeing should prioritize interventions that encourage prudent financial behaviour and improve perceived financial satisfaction through financial planning, goal-setting, and financial education. Theoretical implication of the present inquiry is in providing empirical evidence of the mediating role of financial satisfaction in the financial behaviour–wellbeing linkage. The results offer meaningful insights for policymakers, employers, and financial wellness practitioners aiming to improve financial outcomes for salaried populations.