Who Is in Control? The Role of Self‐Perception, Knowledge, and Income in Explaining Consumer Financial Behavior

The current research examines the relationship between consumer financial knowledge, income, and locus of control on financial behavior. Ethnicity is included as a potential moderator of the effects of these three variables on financial behavior. Findings suggest that consumers’ propensity to save, budget, and control spending depends partly on their level of perceived control over outcomes as well as knowledge and financial resources. Evidence of race and ethnicity as moderators is mixed.