A Study On Financial Self-Efficacy During Covid-19

Abstract

Financial Self-efficacy is defined as a person’s observed capability to control his/her personal finances (Lapp, 2010; Postmus, 2011). It refers to one’s beliefs in the abilities to accomplish a financial goal or task. It is the “knowledge and ability to influence and control one’s financial matters” by Fox and Bartholomae (2008). Financial efficacy pattern of people during very critical moment is unknown. The world is experiencing one of the deepest recessions since the Great Depression in the 1930s owing to the novel coronavirus, World Bank President David Malpass has said, terming the COVID-19 pandemic a “catastrophic event” for many developing and the poorest countries. Aim of the study is to examine financial efficacy pattern of people during lockdown period for COVID-19. Data were collected through online mode using financial efficacy scale developed by authors for the study. Results of principal component analysis revealed that during lockdown, financial efficacy is more concerned with financial planning, planned payment and financial coping.