Self-Efficacy, Religiosity, Financial Behavior, and Financial Well-Being

Past literature has intensively investigated numerical factors in determining financial behavior and financial well-being.This study aimed to examine the impact of non-numerical cognitive factors toward financial behavior and financial well-being.The two non-numerical cognitive factors are self-efficacy and religiosity.Based on Bandura's social cognitive theory, self-efficacy was adopted.Given the importance of religion in the decision making process of Muslims, it has been incorporated into this study.A total of 219 data from the Muslim community were used to test the research model.This study employed Structural Equation Modeling (SEM) to examine the interconnections among self-efficacy, religiosity, financial behaviour, and financial well-being.This study found that self-efficacy and religiosity were significantly related with financial behavior and financial well-being.However, there was no significant correlation between financial behaviour and financial well-being.This study suggests that self-efficacy and religiosity should be considered in supporting individuals' financial decision making.Confidence in managing money and strong spiritual life can enhance Muslims in addressing financial matters.