Asian Journal of Economics, Business and Accounting

Purpose: The financial well-being (FWB) of working Ghanaians is explored in this study, examining the complex interplay between their thoughts on money, their financial actions, and their overall financial health. The study focused on three key areas of their psychological beliefs: Subjective Financial Knowledge (SFK), Financial Attitude (FA) and Locus of Control (LOC). Researchers looked at how these beliefs might influence financial behavior (FB), acting as a bridge between them and overall FWB.

Design/Methodology/Approach: Using a quantitative research design, data were collected from 444 working adults through a structured questionnaire. Descriptive statistics were computed using SPSS version 27, and the structural model was tested through Structural Equation Modelling (SEM) in Smart PLS 4.0 to assess the hypothesised relationships and control variables.

Findings: The results showed that SFK has a positive and significant influence on both FWB (β = 0.154, p < 0.05) and FB (β = 0.447, p < 0.001), supporting H1a and H1b. The findings further showed FA having an affirmative correlation on both FWB (β = 0.300, p < 0.001) and FA (β = 0.252, p < 0.001) backing H2a and H2b.  However, LOC yielded insignificant positive correlations on FWB (β = 0.090, t = 1.587, p = 0.113) and FB (β = 0.100, t = 1.526, p > 0.05, p = 0.127), leading to the rejection of both H3a and H3b. H4 was accepted by the findings (β = 0.332, p < 0.001) which shows FB been a strong predictor of FWB. The finding also established that FB significantly mediates the relationships between SFK and FWB (β = 0.148, p<0.001) and between FA and FWB (β = 0.084, p<0.001) supporting H5a and H5b. On the contrary, findings of the study suggested that FB does not play a significant role in mediating the relationship between LOC and FWB (β = 0.033, p=0.134) leading to the rejection of H5c. Control variables showed no significant influence on FWB. 

Practical Implications: These results emphasize the role of financial literacy and fostering a positive mindset about money in promoting financial security for Ghanaian Working Adults. This research offers valuable insights for policymakers, financial professionals, and academics, filling a gap in our understanding of how psychological factors interact with financial practices to influence overall FWB. By recognizing how people's beliefs about money affect their FWB and overall well-being, stakeholders can design better interventions that promote positive financial literacy and attitude. This can ultimately lead to a more financially secure and resilient working population in Ghana.

Conclusion: This study sheds light on the intricate relationships between PB and FWB among working adults in Ghana, with a particular focus on the mediating role of FB. Research on financial capability has been heavily concentrated in developed economies, yet this work situates the framework within Ghana’s socio-economic realities, where income variability, limited access to financial services, and cultural norms around money management shape financial decision-making. Thus, by contextualizing financial literacy and behavior within these constraints, the study offers a nuanced understanding of how financial capability operates in lower-middle-income settings.