Shaping Financial Behavior: The Impact of Financial Self-Efficacy, Literacy, and Attitude Among Academic Staff of Public Universities in Sri Lanka

Abstract

This study examines the effects of financial self-efficacy, financial literacy, and financial attitudes on the financial behavior of academic staff at public universities in Sri Lanka. Recognizing the importance of responsible financial practices within the academic community, the research aims to identify the key psychological and knowledge-based factors that influence financial decision-making. Data were collected from 420 university academics using a structured questionnaire and analyzed through Structural Equation Modeling (SEM). The findings indicate that all three factors, namely financial self-efficacy, financial literacy, and financial attitude, have significant positive effects on financial behavior. Among them, financial self-efficacy was identified as the most influential predictor. These results suggest that enhancing individuals’ confidence in managing their finances, promoting financial knowledge, and cultivating positive attitudes can lead to better financial practices.