Financial self-Efficacy and saving behaviour of Kenyan University Staff: The mediating role of financial well-being

Abstract

The purpose of the current paper is to explore the effect of financial self-efficacy on saving behaviour among university staff in Kenya. In addition, the paper endeavoured to examine the mediating role of financial well-being between financial self-efficacy and saving behaviour. Our study deemed the bi-directional nature of the attributes of these financial capabilities in real life context. To achieve the aforementioned objectives, the study was anchored on social cognitive theory and subjective well-being theory. The study targeted university employees drawn from eight public universities in Western Kenya based on the geographical location. The paper adopts a survey by questionnaire method to gather data from 350 university employees through stratified and simple random sampling techniques. The hypotheses were tested using PROCESS 4.2 (Model 4). This study found a positive relationship between financial self-efficacy and saving behaviour (β = 0.4149, p < 0.05). Furthermore, financial well-being partially mediates the relationship between financial self-efficacy and saving behaviour (β = 0.2406, p < 0.05), Thus, our study demonstrates that there is both a direct and indirect relationship between financial self-efficacy and saving behaviour through financial well-being. Given the current economic challenges, understanding how university employees manage their finances with a saving mindset has become a critical concern for institutions. As a result, university leaders need to provide professional avenues through which their employees can be encouraged to effectively manage their funds and save in order to improve their financial well-being. The findings of this study add to knowledge by giving significant evidence on the determinants of saving behaviour and financial well-being among university employees. The indirect mediation results provide new insights into theory and practice. This is critical to learning about the idea of financial well-being and addressing empirical and practical gaps in academic settings.