Mediating Role of Financial Confidence in the Relationship between Financial Literacy and Financial Decision Making (A Study among Salaried Women in Rayalaseema Region)

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R. Nagaveni, B.C. Lakshmanna, M.L.S. Deva Kumar

Abstract

Financial literacy equips with the knowledge to navigate investment options, while financial confidence empowers to act on that knowledge. Together, they enable informed decision-making, reducing risk and increasing the chance of success in investment journey. This Research investigates The influence of financial knowledge on financial decision-making among salaried women investors in the Rayalaseema region of Andhra Pradesh, India. The study hypothesizes a two-pronged effect of financial literacy: firstly, a direct and favourable impact on financial decision making and secondly, an indirect influence mediated by financial confidence. To test these hypotheses, the study gathered quantitative data through surveys from 308 respondents and analysed the relationships with Regression using process macro in SPSS. The findings informed that the development of targeted financial literacy programs not only enhance knowledge but also build financial confidence, empowering women to make informed investment decisions and achieve greater financial well-being. This study reveals that financial literacy significantly enhances financial decision-making among salaried women. Moreover, financial confidence, mediated by financial literacy, further improves decision-making. These findings underscore the crucial function of financial literacy in empowering women.

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