Investigating the determinants of financial well-being : empirical evidence from students at the Higher National School of Management (ENSM)

Abstract

Global efforts to improve financial well-being are rising, but financial well-being remains a develo ping concept, with models often from developed economies. This necessitates a multi-disciplinary approach, especially in developing contexts like Algeria. This study aims to investigate factors and the direct, mediated, and moderated pathways influencing financial well-being among 188 Higher National School of Management (ENSM) students. A quantitative survey collects data on financial well-being, financial knowledge, stress, financial behavior, and demographics using various cross-culturally validated scales. The financial well-being of students, specifically measured using the CFPB scale to ensure comparability, averages 49.96% out of 100%, with scores ranging from 31 to 61 from 100, indicating low to moderate levels of financial well-being. PLS-SEM analysis reveals financial behavior as the strongest positive financial well-being predictor and financial stress as the most significant negative determinant. Despite students having high financial knowledge (exceeding the OECD 2023 average), it negatively correlates with financial well-being, suggesting a "knowledge-stress paradox" where awareness heightens perceived financial vulnerability. Income and demographics show only indirect effects, mainly via financial stress and behavior. The study highlights a need for interventions focusing on financial literacy and skills to bolster positive behavior and mitigate stress, particularly for financially dependent students