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Journal of Finance & Economics Research - Volume 10, Issue 2 2025
By Imtiaz Arif, Ayman Wadood, Jahanzaib Alvi
10.20547/jfer2510205
Keywords: Behavioral Finance, Financial Literacy, Financial Behavior, Locus of Control
This study aims to examine the moderating role of locus of control in the relationship between financial literacy and financial behavior in Pakistans banking sector. The study adopts a quantitative research approach, utilizing an explanatory research design. Data were collected through a structured questionnaire using a surveybased method. A convenience sampling technique was employed, with a sample size of 192 respondents. The results indicate a significant positive relationship between financial literacy and financial behavior. Additionally, both internal and external locus of control were found to be positively associated with financial behavior. However, the moderating role of locus of control in the relationship between financial literacy and financial behavior was not statistically significant. Practical implications – The findings provide valuable insights for policymakers and practitioners in the banking sector to design financial literacy programs and behavioral interventions that enhance financial well-being. Understanding the role of financial literacy and locus of control can aid in developing targeted strategies for improving financial decision-making among individuals. This study contributes to the literature by examining the interplay between financial literacy, locus of control, and financial behavior within Pakistans banking industry. It offers empirical evidence on how these factors shape financial decision-making, providing implications for financial education and behavioral finance research.
Submission Date: 27 Mar, 2025 Reviews Completed: 22 Apr, 2025Acceptance Date: 19 Aug, 2025 Publication Date: 30 Nov, 2025