A STUDY ON PERSONAL FINANCE MANAGEMENT AMONG MILLENNIALS

Abstract

This research studies the personal finance management behaviors of Pakistani millenniais, aiming to lecognize the roles of financial literacy, financial attitude, locus of control, and income m shaping these behaviors. Millenniais, defined as individuals born between 1981 and 1996, face unique financial challenges in Pakistan, including high inflation, limited access to formal financial services, and significant cultural and social pressures that influence spending and saving habits. The study, grounded in the Theory of Planned Behavior (TPB) and Social Learning Theory (SLT), seeks to bridge existing research gaps by examining not only the individual impacts of the key variables but also their combined effects within the Pakistani socio economic context. A structured questionnaire was distributed to a sample of 349 millenniais from diverse socio economic and geographic backgrounds. The data collected were analyzed using descriptive statistics, reliability tests, correlation analysis, and multiple linear regression. Income also showed a significant impact, reflecting the critical role of economic resources in enabling effective financial practices. Financial attitude, while moderately influential, also contributed to positive financial management behaviors. Interestingly, locus of control despite being a key psychological factor was not found to have a statistically significant impact in the regression analysis, contrasting with findings in other cultural settings. The study’s findings emphasize the predominance of financial knowledge and tangible economic in determining financial behavior within the Pakistani millennial factors over psychological traits m demographic. The results suggest that improving financial literacy and expanding access to financial services are essential for enhancing millenniais' financial well-being. Moreover, the of contextualizing financial behavior studies within specific research highlights the importance cultural and economic environments, as universal psychological theories may not fully capture the nuances of financial decision-making in developing countries.