In Volume 30 (1) of the Journal of Financial Counseling and Planning (JFCP), Hoa Thi Nguyen’s paper presents the development and validation of a Financial Self-Efficacy Scale that was tested with women in the United States. The Women’s Financial Self-Efficacy Scale (WFSES) showed good evidence of reliability and validity. Its reliability coefficient alpha was .93. It was also positively correlated with the New General Self-Efficacy Scale, which showed good evidence for its criterion-related validity. Factor analysis showed four factors to be consistent with the common categories in financial management curricula.
- Saving & investing
- Knowledge about financial services
- Financial goals achievement
- Cash flow management and credit basics
The WFSES could be used as standardized measurement in longitudinal study and program evaluation. Practitioners could also use it in their daily practice to see how their clients perceive their confidence in managing finance. The four factors could be used as four sub-scales to measure financial self-efficacy in different aspects of financial management.
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Download the research (available to AFCPE members or by request from the author): Hoa Thi Nguyen, “Development and Validation of a Women’s Financial Self-Efficacy Scale,” JFCP, Vol 30(1)