Determinants of working women's financial behaviour: an Indian study

Purpose In the current era, where financial markets are easily accessible, some individuals confidently save and invest while others hesitate. Grounded on socialization and the social cognitive theory, this work proposes a conceptual framework to examine the influence of financial literacy and socialization on financial behaviour among working women. Additionally, this work explores the role of financial coping behaviour and self-efficacy as serial mediators between financial literacy, socialization and behaviour. Design/methodology/approach Data were gathered from 284 female respondents through purposive sampling techniques working in different sectors in the Delhi-NCR area of India. Partial least square (PLS) structure equation modelling using Smart PLS was utilized to test the proposed hypothesis of the study. Findings emphasize the role of financial efficacy and coping strategies in improving the financial outcome. Financial literacy alone does not guarantee positive financial behaviour unless women have adequate confidence in their abilities and appropriate strategies to implement them. Findings Findings highlight that behavioural and psychological factors are crucial in translating adequate outcomes beyond financial knowledge and sufficient financial and social exposure. Financial literacy and socialization substantially influence women's financial behaviour, with self-efficacy and coping behaviour as crucial mediators. Research limitations/implications This work offers practical implications for policymakers, institutions, government and educators seeking to design targeted financial education and confidence development programs. These steps can further foster the women's financial capability in order to make the financial strategies wisely. The insights derived from this research work are particularly relevant for financial institutions and bank marketers who seek to tap the growing working women's segment more effectively. By critically understanding the underlying drivers of women's financial behaviour, banks and financial institutions can design more targeted communication strategies for gender-sensitive financial products and services that foster financial engagement and management among female workers. By emphasizing the role of psychological and internal factors in shaping women's financial behaviour, this work underlines the significance of moving beyond transactional engagement to build long-term trust and confidence. Originality/value This work adds to the existing body of literature by integrating psychological and behavioural factors with individual and social factors into the financial behaviour framework.