Culture and demographics as moderators of psychological and social influences in personal financial management behavior among Indian young professionals

Predicated on the discourse that culture and demographics may perform a strong function in human behavioral tendencies, the current study examines the moderating role of a cultural aspect i.e. long term orientation and demographics (gender and income) in the relationship between financial socialisation (through parental direct teaching and through peers and media), attitude towards money, financial self-efficacy, external locus of control, financial risk tolerance, and procrastination as psychological factors, and personal financial management behavior among Indian professional youth. We tested theory-based hypotheses using structural equation modeling and multi-group analysis in Analysis of Moment Structures software. The findings indicate that long-term orientation significantly moderates the linkage of personal financial management behavior with the psychological factors of attitude towards money, external locus of control, and procrastination. It also moderates the link between financial socialisation through parental direct teaching and personal financial management behavior. Furthermore, gender moderates the link between procrastination and personal financial management behavior, as well as between financial socialisation through peers and media and financial self-efficacy. Gender also influences the effects of parental direct teaching on attitude towards money, external locus of control, and procrastination. In addition, income level influences several relationships: between external locus of control and personal financial management behavior, between peer and media financial socialisation and financial self-efficacy/external locus of control, and between parental direct teaching and the psychological factors of attitude towards money, financial self-efficacy, external locus of control, and financial risk tolerance. The findings of this research have suggestions for financial managers, policymakers, and other stakeholders.