Cracking the Wealth Puzzle: Investigating the Interplay of Personal Finance, Expenditure Behavior, and Financial Management
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Date
2024-10
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Villnius University Press
Abstract
This paper investigated the wealth puzzle by examining the relationships among personal finance
(PF), expenditure behavior (EB), and financial management (FM). Data from a diverse sample of 2000 individuals across regions such as Kosovo, Ghana, Kenya, Nigeria, Turkey, Pakistan, Nepal, Uganda, Cameroon,
Ethiopia, India, Indonesia, Albania, Oman, and Egypt were collected through an online questionnaire from
2023 to 2024, and processed through exploratory and confirmatory factor analyses using AMOS and SPSS
programs. Results revealed the robust relationships among PF, EB, and FM, indicating their resilience and
strong internal consistency, and underscoring their pivotal role in shaping individuals’ financial stability and
well-being. Notably, EB emerged as a crucial determinant, highlighting the importance of aligning spending
habits with family priorities, moderating excesses, and consistently reviewing for improvements. Moreover,
critical variables within PF and FM underscored the necessity for strategic financial planning, efficient spending optimization, and the cultivation of resilience against unforeseen financial obstacles. This research has
significantly advanced the understanding of wealth dynamics and provided practical insights for policymakers
and educators to design targeted financial education initiatives that can improve financial well-being and longterm prosperity. Future research should concentrate on understanding underlying mechanisms and assessing
intervention effectiveness across more variables and countries.
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Citation
Lulaj, Enkeleda. 'Cracking the Wealth Puzzle: Investigating the Interplay of Personal Finance, Expenditure Behavior, and Financial Management', Ekonomika - Vilniaus Universitetas, vol. 103/no. 3, (2024), pp. 122-142.