Empowering Financial Literacy: Unraveling the Influence of Attitudes toward Money and Social Agents with Mediating Self-Efficacy and Moderating Mindfulness

Abstract

This research article aims to investigate the influence of financial social agents and attitudes toward money on financial literacy among retail investors in the Pakistan Stock Exchange (PSX) population. The research employs a quantitative research design, utilizing structured questionnaires administered to a sample of retail investors within the PSX population. The sample selection is carried out through a stratified random sampling technique to ensure representative diversity. The study's findings reveal that financial social agents, such as family, friends, and financial advisors, significantly influence financial literacy among retail investors in the PSX population. Positive attitudes toward money are also found to have a significant positive impact on financial literacy. Furthermore, financial self-efficacy is identified as a mediator between attitudes toward money and financial literacy. The study uncovers that mindfulness moderates the relationship between financial social agents and financial self-efficacy, as well as the relationship between attitudes toward money and financial self-efficacy. The mediating role of financial self-efficacy and the moderating role of mindfulness contribute to a more nuanced understanding of the factors driving financial literacy among retail investors.