The Antecedents Affecting Household Financial Planning with Emphasis on Cultural Values

Financial planning helps households in achieving their financial goals and dealing with the unexpected events in life. Based on this, the purpose of this study is to investigate the antecedents affecting household financial planning through the use of the expanded theory of planned behavior. In terms of the method, this study is descriptive-correlation and structural equation modeling. The population of this study includes the Iranian household and the sample size is 328 people. The required data was collected through a questionnaire. Research data has been analyzed using structural equation modeling and through SPSS version 26 and Amos version 24 software. According to the research findings, all three components of cultural values (familism, affect and cognition) and financial knowledge have a positive and significant effect on the intention of financial planning (p < 0.01). Also, the two variables of financial attitude and perceived behavioral control have a mediating effect on the relationship between the components of cultural values and financial knowledge with the intention of financial planning (p < 0.01). Therefore, cultural values as an important antecedent on people's financial behavior require special attention of households and policy makers.