Financial Self-Efficacy and Debt Behavior: Does Gender or Marriage Matter?

This study investigates the relationship between financial self-efficacy and debt behavior, focusing on gender and marital differences. Using data from the 2021 National Financial Capability Study (NFCS) and employing structural equation modeling, this paper analyzes other forms of debt, not just credit card debt, as previously studied. The study finds that higher financial self-efficacy is generally significantly associated with controlled debt across gender and marital status. While the gender differences in this relationship are not statistically different, marital differences exist, with stronger relationships observed among married individuals. These findings indicate that tailored financial education and interventions, such as affirming positive outcomes and praising them when they reach challenging goals, could boost individuals' financial self-efficacy and improve debt management, thereby addressing financial challenges more effectively across gender and marital statuses.