Millennials' financial behaviour and financial well-being: the moderating role of future orientation

Most Millennials tend to have a limited consideration of the future, prioritising the current social context and often opting for present-focused thinking and actions. This inclination may lead to compromised decision-making, particularly in their finances, potentially resulting in irresponsible financial behaviour and reduced financial well-being. Hence, with an integrated framework of cognitive development theory and social cognitive theory, the study delved into factors affecting financial behaviour and financial well-being, while examining the moderating role of future orientation within the context. In total, 529 Millennials from Malaysia completed the questionnaire. Covariance-based structural equation modelling (SEM) was used to assess both the measurement and structural model. Results indicated that financial knowledge significantly affected financial attitude, perceived behavioural control, and financial behaviour. Similarly, financial attitude, financial self-efficacy, and perceived behavioural control significantly affected financial behaviour. Further, financial behaviour significantly affects the financial well-being of Millennials. This study identified the vital moderating role of future orientation in the model. The findings offer a fresh perspective on personal finance, providing future researchers with valuable insights to investigate the evolving trends among Millennials.