Investigating the Direct Effect of Financial Knowledge, Financial Stress, Financial Risk Tolerance and Financial Socialization on the Financial Behavior and Financial Well-Being of Individuals in Iran

This study aims to investigate the financial
well-being of individuals in Ahvaz, Iran, and explores
the factors that influence their financial behavior and
well-being. The sample consisted of 394 participants
from various socio-economic backgrounds. The study
employed a survey questionnaire to collect data on
financial behavior, financial well-being, and several key
determinants, including financial knowledge, financial
risk-tolerance, and financial socialization. The findings
revealed significant associations between financial
behavior and both financial well-being and overall wellbeing. Positive financial behavior was found to be a
significant predictor of higher levels of financial wellbeing and enhanced overall well-being among
individuals in Ahvaz. This highlights the importance of
adopting responsible financial behaviors, such as
effective budgeting, saving, and responsible debt
management, for achieving better financial outcomes
and overall life satisfaction. Furthermore, the study
identified financial knowledge, financial risk-tolerance,
and financial socialization as influential factors in
shaping individuals' financial behavior and well-being.
Higher levels of financial knowledge were associated
with more positive financial behaviors and greater
financial well-being. Similarly, individuals with higher
financial risk-tolerance were more likely to engage in
positive financial behaviors and experience higher levels
of financial well-being. Additionally, financial
socialization, including the transmission of financial
knowledge and values from parents or family members,
had a positive impact on individuals' financial behavior
and overall well-being. These findings emphasize the
significance of financial literacy programs,
interventions, and family-based financial education to
enhance individuals' financial knowledge, risktolerance, and socialization. By promoting positive
financial behaviors, such initiatives can contribute to
improved financial well-being and overall life
satisfaction among individuals in Ahvaz, Iran.