INFLUENCE OF COGNITIVE ABILITIES AND SELF-EFFICACY ON FINANCIAL BEHAVIOR

Abstract

This paper explores the relationship between cognitive abilities, self-efficacy, and financial behavior. It examines how cognitive abilities influence an individual's capacity to make sound financial decisions, and how self-efficacy mediates this relationship. Through a review of existing literature and analysis of empirical data, this study identifies key factors that impact financial behavior, offering insights into how cognitive and psychological factors can be leveraged to improve financial decision-making and literacy.