Abstract
This research investigates the intricate relationship between financial literacy (FL), financial behavior (FB), and financial resilience (FR) across various socio-economic dimensions such as age, gender, income, and education. Building on previous studies, this paper focuses on how these factors may moderate the connection between FL and FR, with FB’s role as a mediator. Conducted in Kerala, a region renowned for its high literacy rate, data from 270 participants was collected through an online survey using convenience sampling. The data was then analysed using IBM SPSS AMOS for Structural Equation Modelling, a widely accepted statistical tool. The analysis reveals robust evidence supporting positive relationships between FL-FB, FB-FR, and FL-FR. Additionally, FB partially mediates the FL-FR relationship. Multigroup analysis highlights distinct impacts across subgroups, emphasizing the nuanced interplay between these socioeconomic factors and financial outcomes. The study’s conclusions, which highlight the urgent need for focused initiatives to improve financial literacy and promote responsible financial behaviour across a range of demographic groups, provide important new insights into financial dynamics. Such initiatives are essential for bolstering financial resilience and ensuring economic stability amidst varying socio-economic contexts and should be a priority for policymakers and practitioners.
Keywords: Financial Behaviour, Financial Literacy, Financial Resilience, Multigroup Analysis, Socio-Economic Factors.