Financial Self-Efficacy as a Predictor of Savings and Investment Behaviour among Working Women

Abstract

The present study examines the role of financial self-efficacy in influencing the savings and investment behaviour of working women. The study was conducted among 250 working women in Thrissur District, Kerala, using a structured questionnaire. Frequency and percentage analysis were used to assess the level of financial self-efficacy, while Pearson’s correlation and simple linear regression analyses were employed to examine the relationship and influence of financial self-efficacy on savings and investment behaviour. The findings revealed that a majority of the respondents (52.8%) possessed a moderate level of financial self-efficacy. Correlation analysis indicated a strong positive relationship between financial self-efficacy and savings and investment behaviour (r = 0.682, p < 0.001). Regression analysis further revealed that financial self-efficacy significantly predicts savings and investment behaviour and explains 46.5 per cent of its variance (R² = 0.465). The study concludes that enhancing financial self-efficacy can contribute to improved savings and investment practices among working women.