---

Author(s): Ophelia Nartey, Dennis Osei Danso.

Volume/Issue: Volume 9, Issue 1 (2026)

Page No: 48-73

Journal: African Journal of Accounting and Financial Research (AJAFR)

---

Abstract:

Purpose – This study examines the relationship between psychological beliefs (PB) factors namely subjective financial knowledge (SFK), financial attitude (FA), and locus of control (LOC) and financial behaviour among working adults in Ghana. It explores how these psychological traits shape individuals’ money management practices and overall financial conduct, offering insights into the behavioural drivers that influence financial decisions and well-being within the Ghanaian context. Design/methodology/approach – A quantitative research design was used, and data were collected from 444 working adults through a structured questionnaire. Descriptive statistics were analysed using SPSS version 28, and Structural Equation Modelling (SEM) was performed with AMOS software using 5,000 bootstrap samples to test the hypothesised relationships while controlling for demographic factors such as gender, age, education, employment status, and monthly income. Findings – The results show that SFK (β = 0.374, p = 0.005), FA (β = 0.789, p = 0.005), and LOC (β = 0.212, p = 0.029) have significant positive effects on FB, confirming that higher financial knowledge, positive financial attitude, and a stronger sense of control enhance financial behaviour. The control variables, including gender, age, education, employment status, and monthly income, showed no significant effects on FB. The coefficient of determination (R² = 0.702) indicates that 70.2% of the variance in financial well-being is explained by the predictors, showing a strong explanatory power. Practical implications – The findings emphasize the need for financial literacy and behavioral programs that encourage positive financial attitudes and a strong sense of control over money management. Policymakers and financial institutions should develop initiatives that build individuals’ financial confidence and promote responsible financial decision-making to improve financial well-being. Originality/value – This study contributes to financial behaviour and well-being literature by providing empirical evidence from a developing economy context. It demonstrates that psychological factors such as knowledge, attitude, and control significantly influence financial behaviour, offering practical insights for policymakers, educators, and financial professionals aiming to improve financial health and economic stability in Ghana.

Keywords:

Financial Behaviour, Financial Well-Being, Subjective Financial Knowledge, Financial Attitude, Locus of Control, Structural Equation Modelling, Ghana.

No. of Downloads: 0