How Financial Literacy Shapes Financial Planning Practices : A PLS-SEM Study of Higher Education Teachers

Authors

  •   Kshitija Pandey Assistant Professor, Vivekanand Education Society’s Business School, Hashu Advani Memorial Complex, 495/497, Collector's Colony, Chembur, Mumbai - 400 074, Maharashtra ORCID logo https://orcid.org/0000-0001-6521-5449
  •   Anju Vaswani Assistant Professor, Vivekanand Education Society’s Business School, Hashu Advani Memorial Complex, 495/497, Collector's Colony, Chembur, Mumbai - 400 074, Maharashtra ORCID logo https://orcid.org/0000-0001-8339-118X
  •   Anju Motwani Assistant Professor (Corresponding Author), Vivekanand Education Society’s Institute of Management Studies & Research, Hashu Advani Memorial Complex, 495/497, Collector's Colony, Chembur, Mumbai - 400 074, Maharashtra ORCID logo https://orcid.org/0000-0001-9797-7405

DOI:

https://doi.org/10.17010/ijf/2026/v20i7/176067

Keywords:

financial literacy, financial planning practices, financial knowledge, financial attitude, financial behavior, structural equation modeling.
JEL Classification Codes :D14, D41, G53
Publication Chronology: Paper Submission Date : August 25, 2025 ; Paper sent back for Revision : May 21, 2026 ; Paper Acceptance Date : June 25, 2026 ; Paper Published Online : July 15, 2026.

Abstract

Purpose : This study examined the impact of financial knowledge (FK), attitude, and behavior on financial planning practice adoption among higher education teachers. Research

Design/Methodology/Approach : Data were collected from 246 faculty members across different academic disciplines for the proposed issue of study, and their responses were considered the main data for analysis. For hypothesis testing of the proposed study, partial least squares structural equation modeling was executed to explore the different correlations among the variables. The study is guided by the theory of planned behavior for understanding financial planning practices, with specific emphasis on the role of financial attitudes (FA) and behavior in shaping financial decision-making.

Findings : The results showed that financial behavior (FB) and knowledge are the main determinants of financial planning practices. However, FA acts as a mediator in the sequential relationship between FK and financial planning practices through FB.

Practical Implications : The results of this study guided policymakers and educational institutions in designing faculty development programs and training programs on financial literacy.

Originality/Value : This study contributed to the financial literacy literature by focusing on the relatively underexplored context of higher education teachers in India. It examined the interactive effects of FK, attitude, and behavior on financial planning practices and empirically validated the role of FA in this relationship as sequential mediation.

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Published

2026-07-15

How to Cite

Pandey, K., Vaswani, A., & Motwani, A. (2026). How Financial Literacy Shapes Financial Planning Practices : A PLS-SEM Study of Higher Education Teachers. Indian Journal of Finance, 20(7), 64–84. https://doi.org/10.17010/ijf/2026/v20i7/176067

Issue

Volume 20, Issue 7, July 2026

Section

Articles
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