The Role of Life Partner Financial Socialization in Shaping Employee’s Subjective Financial Well-Being in Sri Lanka's Banking Sector with a Particular Focus on the Moderating Role of Financial Capability

Abstract

Past studies reveal that the role life partner in predicting subjective financial well-being remains inadequately understood.Literature also highlights that the financial capability is a critical determinant of how effectively individuals can apply the knowledge and skills acquired from these agents. Therefore, this study examines how financial interactions and discussions with life partners influence employees' perceptions of their financial wellbeing, with a particular focus on the moderating role of financial capability. Despite numerous studies on consumer subjective financial well-being, there is a significant gap in research specifically form the conceptual framework. A purposive sampling technique was used to select 388 bank employees from the Western province, who were then surveyed using a structured questionnaire. The analysis was conducted using hierarchical multiple regression, revealing that financial socialization with life partners significantly influences subjective financial well-being. The study further reveals that individuals with higher financial capability are more likely to effectively utilize addressing the subjective financial well-being of employees particularly in the banking sector. This study is grounded in social cognitive theory and the capability approach, which together financial knowledge, attitudes, and behaviors learned from their life partner. These findings underscore the necessity for targeted educational initiatives aimed at enhancing financial capability and promoting financial socializatin.