Does Prosocial Finance Help or Hurt? Examining Frugality, Digital Literacy, And Self-Efficacy in Household Financial Well-Being
DOI:
https://doi.org/10.17977/um003v11i32025p204Keywords:
Financial Well-Being, Prosocial Financial Behavior, Frugality, Digital Financial Literacy, Self-EfficacyAbstract
Family financial well-being is becoming more important today, especially as social changes and digital tools affect daily life. This study looks at how helpful money habits, being careful with spending, and knowing how to use digital financial tools affect family financial well-being, and also how confidence in yourself (self-efficacy) changes these effects. Using a numbers-based approach, the study analyzed data from 384 families in Malang City with structured questionnaires and Structural Equation Modeling – Partial Least Squares (SEM-PLS). The study shows that helpful money habits, being careful with spending, knowing how to use digital financial tools, and confidence in yourself (self-efficacy) all improve family financial well-being. Interestingly, confidence in yourself can slightly reduce the effect of helpful money habits. On the other hand, it increases the benefits of being careful with money and using digital tools, making them more effective. This study helps us understand family finances and gives useful advice for policymakers to create better financial education and support programs.
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