The Mediating Effect of Financial Literacy on the Relationship between Saving Behavior and Financial Well-being of Micro, Small, and Medium Enterprises in Babak District

The objective of this study was to find the mediating effect of financial literacy in the relationship between saving behavior and financial well-being of micro, small and medium enterprises (MSMEs) in the Babak District. Universal sampling technique was used which included 100 business owners of MSMEs. Through non-experimental quantitative mediation analysis utilizing descriptive correlation technique of research, validated questionnaires, mean, Pearson-r, and Path analysis, results showed a very high level of saving behavior, high level of financial well-being, and very high level of financial literacy. There was a significant relationship among saving behavior, financial well-being, and financial literacy. It was also found that there was no mediation on the effect of financial literacy on the relationship between saving behavior and financial well-being. Accordingly, saving behavior can affect financial well-being in other way, not through financial literacy.