Impact of Cognitive and Non-Cognitive Factors on the Financial Well-being of Working Women: Mediation of Financial Behavior

Abstract

The study investigates how financial literacy and the non-cognitive traits of self-control and grit contribute to working women’s financial well-being, and assesses the mediating role of financial behavior. Data from 247 female faculty members in Pakistan’s education sector, collected through stratified random sampling, were assessed using covariance-based structural equation modeling. It is found that financial literacy contributes to FWB via financial behavior, whereas grit directly and significantly predicts FWB. The study offers empirical and theoretical contributions by developing a comprehensive FWB framework and integrating grit to bridge finance and psychology. These insights open the gate for future investigations and policymaking.