Money on the mind: emotional and non-cognitive predictors and outcomes of financial behaviour of young adults

Studies have shown the important role financial behaviour plays in the lives of individuals. However, few papers have looked at the determinants of financial behaviour and even fewer have examined the role of non-cognitive factors in explaining financial behaviour. We examine the effect of non-cognitive factors including financial anxiety, financial attitude, financial self-efficacy, and self-control on financial behaviour of young adults. Further, we explore the impact of financial behaviour on an individual’s level of happiness in life. Using cross-sectional data from a survey of business students from a university in Ghana, the partial least square structural equation modelling technique was employed to analyse the data. We find that individuals with higher levels of self-control, financial self-efficacy and financial attitude are more likely to exhibit good financial behaviour, and improved financial behaviour leads to higher levels of happiness among individuals.