The Relation between Financial Literacy, Financial Wellbeing and Financial Concerns

Abstract

Increased variety of products and the instability of the global economy in twenty first century caused increasing complexity of financial decisions and also caused consumers faced with the challenge in economic and financial activities. For this reason, in the last decade, the importance of financial management skills in personal and work life has increased and researches in this area has been done. In this regard, this study tries to evaluate the relation between financial literacy, financial wellbeing and financial concerns. For this purpose, a questionnaire was designed and distributed using random sampling among people. Data was analyzed using correlation test, Independent two-sample test based on the T distribution and regression. The results showed that age and education are positively correlated with financial literacy and financial wellbeing. Married people and men are more financially literate. Higher financial literacy leads to greater financial well-being and less financial concerns. Finally, financial wellbeing leads to less financial concern.