From Financial Literacy to Financial Behavior: A Systematic Literature Review and the Financial Behavior Formation Model (FBFM)

Fajriani Azis; Adriansyah Adriansyah; Nurul Emil Safitri

doi:10.61255/jeemba.v4i5.1823

Authors

Fajriani Azis Universitas Negeri Makassar, Indonesia
Adriansyah Universitas Negeri Makassar, Indonesia
Nurul Emil Safitri Universitas Negeri Makassar, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i5.1823

Keywords:

Financial Behavior, Financial Literacy, Self-Control, Locus of Control, FinTech

Abstract

Purpose – This study synthesizes empirical evidence on the determinants and mechanisms shaping financial behavior and develops an integrative conceptual framework to explain how cognitive, affective, behavioral, and contextual factors interact in financial decision-making.

Design/methodology/approach – A Systematic Literature Review (SLR) was conducted following the PRISMA 2020 protocol. From studies published between 2014 and 2025, 36 empirical studies were selected from a final pool of 47 articles after quality and access assessment. The review addressed six research questions covering cognitive factors, financial literacy, self-control and locus of control, cultural and institutional influences, FinTech, and theoretical integration.

Findings – The synthesis indicates that financial literacy influences financial behavior through financial attitude, self-efficacy, and self-control, while family financial socialization, cultural norms, institutional access, and digital environments shape these relationships. Based on these findings, the study proposes the Financial Behavior Formation Model (FBFM), comprising three interconnected pathways cognitive, affective, and behavioral/executive embedded within a contextual layer.

Originality/Value – FBFM extends existing models by positioning self-control and locus of control as an independent behavioral pathway, cognitive biases as systematic disruptors, and FinTech as a provisional behavioral amplifier. Twelve theoretical propositions (P1–P12) are developed to guide future empirical research, with implications for financial education policy and curriculum development in Indonesian higher education.

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