Impact of Financial Behaviour on Financial Well-Being: Evidence among Working Adults in Ghana

Purpose – This paper is aimed at examining the effect of financial behaviour (FB) on financial well-being (FWB) among working adults in Ghana, focusing on how positive financial practices contribute to improved financial outcomes. This paper addressed a critical gap in FWB research by focusing specifically on working adults in Ghana, a demographic largely overlooked in existing literature that predominantly examines university students. 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 showed that all control variables had no significant effect on FWB: gender (β = – 0.015, p = 0.578), age (β = 0.018, p = 0.368), education (β = 0.012, p = 0.523), employment status (β = –0.002, p = 0.808), and monthly income (β = –0.007, p = 0.771). However, FB had a strong and significant positive effect on FWB (β = 0.906, p = 0.007), indicating that better FB enhances FWB. Practical implications – The study underscores the need for financial literacy and behavioural training among working adults in Ghana. Promoting positive financial habits such as budgeting, saving, and responsible spending can significantly improve individuals’ financial stability and satisfaction. Within Ghana's unique socioeconomic context, characterised by high informal employment and limited social safety nets, these findings underscore the urgent need for behavioural interventions rather than income-focused programmes to enhance citizens' financial stability and satisfaction. Originality/value – This study contributes to the limited empirical research on financial behavior (FB) and financial wellbeing (FWB) within the Ghanaian context, demonstrating that demographic factors play a minimal role compared to behavioural influences in determining FWB.