Abstract This study examines the relationships among financial self-efficacy, financial goal setting, and financial well-being among salaried employees in Indian higher-education institutions. Drawing on social cognitive theory and self-regulation frameworks, it conceptualises financial goal setting as a distinct self-regulatory mechanism linking confidence in managing finances with financial well-being, rather than treating financial behaviour as a broad omnibus construct. The framework also allows for a direct association between self-efficacy and well-being. Survey data from 312 higher-education employees in India were analysed using partial least squares structural equation modelling (PLS-SEM). Financial self-efficacy was positively associated with financial goal setting ( β = 0.609, p < .001), and financial goal setting was positively associated with financial well-being ( β = 0.401, p < .001). Financial self-efficacy also retained a significant direct association with financial well-being ( β = 0.372, p < .001). The indirect association between financial self-efficacy and financial well-being via goal setting was significant ( β = 0.245, p < .001), consistent with a pattern of partial mediation. The model explained 37% of the variance in financial goal setting and 48% of the variance in financial well-being. These findings indicate a theoretically consistent pattern in which financial self-efficacy, financial goal setting, and financial well-being are systematically associated within an emerging-economy workplace context. By isolating goal-setting processes within the broader self-regulatory sequence, the study provides a more precise account of how motivational beliefs correspond with perceived financial well-being. However, given the cross-sectional design, the findings should be interpreted as associational rather than causal. The results carry implications for organisations and policymakers seeking to support financial well-being through interventions that strengthen financial self-efficacy and encourage structured goal-setting practices, while recognising the need for further longitudinal validation.
Khurana et al. (Thu,) studied this question.