Financial Management Practices as Predictors of Financial Satisfaction: Evidence from Engineering Faculty

Abstract

This study examined the association between practices of financial management and satisfaction with finances among engineering faculty members working in private engineering colleges in the Kathmandu Valley of Nepal. The study was quantitative with cross-sectional design approach was used, where the primary data of 216 full-time and part-time faculty members from engineering colleges in the Kathmandu Valley was gathered using a structured self-administered questionnaire. The study covered six dimensions of financial management practices – money management, insurance planning, investment planning, retirement planning, saving planning and debt management and financial satisfaction were measured using five-point Likert scale along with descriptive statistics, testing of reliability and validity using Cronbach's alpha, composite reliability and average variance extracted as well as multiple regression analysis including mediation analysis using SPSS and MS Excel. Faculty members who were surveyed indicated moderate financial management practice levels and financial satisfaction levels. Investment planning was the strongest positive predictor of financial satisfaction, followed by savings planning and insurance planning. Money management and debt management did not act as significant predictors. The financial satisfaction of faculty members was the highest among those who engaged in income-generating activities and savings practices. Personal money management, however, did not appear to have any impact on financial satisfaction. Whereas financial attitude was positively related to satisfaction, it did not affect the latter, implying that financial behavior was more important than attitude for this group. The research regarding financial literacy and satisfaction was not adequately available when it came to private higher educational institutes in Nepal, specifically targeting engineering faculties. The present study advances the previous research done regarding satisfaction of Nepali faculty members with regards to approaching finance and measuring satisfaction toward finance. It gives practical guidance with the help of educational institutions as well as educators in finance.