Mediation effect of financial attitude on financial knowledge and financial behavior: The case of university students

Abstract

In this study, we aim to look into the relation among different aspects of an individual’s attribute with financial issues, namely financial knowledge, attitude and behavior and to examine whether the relationship between financial knowledge and financial behavior is strengthened with financial attitude. To this end, 396 university students in Turkey are surveyed online regarding their attitudes towards financial issues, their level of financial knowledge, and their financial behavior. We use Factor Analysis, Cronbach's Alpha, and Structural Equation Modeling (SEM) to analyze the relationship between financial knowledge of the survey participants with their financial attitude and behavior as well as the mediation effect of financial attitude in this relationship. We find that financial attitude acts as a mediator in the financial knowledge and financial behavior relationship and financial attitude’s intervention reinforces this relationship.