Unravelling the Interplay between Personality Traits and Financial Behaviour among Young Adults in Pakistan

The current study aimed to explore the intricate relationship between personality traits and financial satisfaction among young adults in Pakistan, emphasizing the mediating role of financial behaviour. Analyzing the data collected from 470 respondents through Partial Least Squares Structural Equation Modelling (PLS-SEM), the study investigated the associations between personality traits (neuroticism, openness to experience, conscientiousness, agreeableness, and extraversion), financial behaviour, and financial satisfaction. The findings revealed significant relationships: openness, extraversion, and conscientiousness positively impact the financial satisfaction, while neuroticism and agreeableness negatively influence it. Moreover, the study also highlighted that financial behaviour mediates the connection between personality traits and financial satisfaction. Additionally, this study elucidated how personality traits affect financial contentment through financial behaviour mediation. The focus on Pakistani young adults added originality and relevance to the study, since their financial behaviours impact education, policy-making, and government efforts to enhance the financial skills. Practical implications extend to educators, policymakers, and government bodies, enabling tailored interventions to improve financial literacy and well-being. Acknowledging the influence of personality traits on financial behaviours and satisfaction may enhance financial education programs and strategies, ultimately promoting better financial decision-making among young adults in Pakistan and beyond.