Causal Factors in Financial Health among Resident in Phayao Province
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Abstract
The objectives of this research are: (1) to evaluate the level of financial health and financial literacy (2) to investigate the factors influencing financial health. The data were obtained through a questionnaire with 384 respondents in Phayao province between age 21 to 60 by multi-stage sampling and employed the path analysis to identify causal relationship. The empirical results found a moderate level of the financial health and a high level of the financial literacy among all participants. The 21-30 year old age group had the highest score, whereas the 51-60 year old age group had the lowest score both of the financial health and financial literacy. In addition, path analysis showed evidence of a significant increase in the financial health caused by marital status, education level, income, expense, knowledge of interest rate, knowledge of inflation, and knowledge of risk diversification; on the contrary, age and occupation could cause the decrease in financial health. The finding of this research shows the importance of having a good financial health which could solve the problem of spending, debt, and personal financial liquidity.
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