Financial capability and satisfaction

Published: 26 September 2020| Version 1 | DOI: 10.17632/t5sc5pw6xj.1
Rina Makgosa, Tendy Matenge, Paul Mburu


This dataset was utilized in a study that examined the effects of financial capability as a direct predictor of financial satisfaction. The study also investigated the role of saving behaviour as a mediator. The purpose of this paper is to empirically test the effects of financial capability (i.e., financial risk tolerance, financial literacy, planned time horizon, delayed gratification, and financial situation) as a predictor of financial satisfaction. It also examines the mediation effects of saving behaviour on the relationship between financial capability and satisfaction. The conceptual framework depicting a series of relationships was formulated based on insights from the Behavioural Life Cycle Theory. A sample of 621 working adults completed a self-administered questionnaire. The results from Multiple Regression Analysis indicated that the most influential predictor of financial satisfaction is financial situation, which had a negative effect. Delayed gratification, financial risk tolerance and financial literacy registered positive and significant effects on financial satisfaction while planned time horizon did not. The results on mediation showed that the relationship between delayed gratification and financial satisfaction is significantly mediated by saving rate. However, saving intentions significantly mediated the relationship between financial risk tolerance and satisfaction as well as between planned time horizon and financial satisfaction. This study is one of the few in the literature that attempts to examine both direct and indirect effects of predictors of financial satisfaction, by focussing on the mediating effects of saving behaviour. Findings contribute to the body of knowledge in the field of personal finance. Additionally, they will guide financial planning efforts and policies that are designed to enhance quality of life through financial satisfaction.



University of Botswana


Consumer Marketing