Financial Cognition, Behavior, and Well-Being in a Generational Context: A Bayesian-SEM Perspective from Türkiye

This study investigates differences in pathways to financial well-being across generations in Türkiye by combining a Bayesian network analysis and structural equation modeling using the family resource management theory. Using nationally representative data from 2,405 students engaged in open and distance education, the study examines how financial knowledge, financial attitudes, and risk tolerance translate into financial behavior and, ultimately, financial well-being across Generations X, Y, and Z. The findings reveal significant generational differences in the pathways that link financial cognition, behavior, and well-being outcomes. Gen Y has the most efficient conversion of financial cognition into financial well-being, whereas Gen X experiences higher money-management stress despite having a relatively high level of knowledge. Gen Z demonstrates high cognitive readiness but unstable behavioral patterns, particularly in risk-related decisions. Financial behavior emerges as the most influential determinant of financial well-being across all cohorts, reinforcing the theoretical centrality of behavioral processes and highlighting the limitations of knowledge-centric financial education models. The findings also suggest a potential “financial awareness paradox,” in which greater financial knowledge may increase perceptions of economic vulnerability, particularly in Türkiye’s inflationary and economically volatile environment. Methodologically, this study presents a novel hybrid analytical framework by combining the predictive strength of Bayesian networks with the confirmatory rigor of structural equation modeling. The combination of exploratory and confirmatory approaches enables robust cross-validation of complex financial behavior mechanisms, whereas measurement invariance analyses support the validity of cross-generational comparisons. Our findings contribute to the literature by demonstrating that generational context shapes financial behavior mechanisms and by highlighting the need for generation-specific financial education and policy interventions.