Determinants of Financial Well-being Among Micro Finance Members: Evidence from Members in Salyan District, Nepal

Abstract

This study examined the influence of financial literacy, financial behavior, financial knowledge, and financial attitude on the financial well-being of microfinance members in the Salyan district. Using a causal research design, primary data were collected through structured questionnaires from 271 active members selected via convenience sampling. Multiple regression analysis revealed that the predictors collectively explained substantial variance in financial well-being [F (4, 266) = 54.811, p < .001)]. Financial behavior emerged as the strongest determinant (β = .600, p < .001), followed by financial knowledge (β = .202, p < .001), highlighting the importance of practical financial practices and informed decision-making. Financial attitude showed a modest negative effect (β = -.104, p = .025), suggesting over-optimism may hinder well-being, while self-assessed financial literacy was not significant. The findings imply that interventions should prioritize behavior-focused strategies complemented by financial education to enhance members' financial well-being.