The Role of Self-efficacy and Financial Attitude to Financial Well-Being: Mediation of MSME Financial Behavior

Abstract

In this study, the effect of self-efficacy and financial attitudes on financial well-being as mediated by financial behavior is examined. 160 respondents from Malang City, East Java, Indonesia, who represent small and medium-sized businesses, made up the study's sample. As an analytical technique, it makes use of structural equation modeling. The results showed that financial activity might influence attitudes that affected both financial behavior and well-being. The findings demonstrated that financial attitudes directly influence financial behavior, which in turn affects financial well-being. How people handle their money for financial well-being may be a moderator of financial attitude. Additionally, a person's behavior and sense of self-efficacy have a direct influence on their financial well-being. One's financial decisions are influenced by self-efficacy. Finally, financial behavior cannot offset the impact of financial self-efficacy on the financial health of SMEs in the craft industry in Malang City.