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