Title: Reducing the financial stress: a study on the role of financial behaviour, financial inclusion and financial stability

Authors: Ruchi Kakkar; Pooja Sharma; Mithilesh Pandey

Addresses: Mittal School of Business, Lovely Professional University (Phg.), India ' Mittal School of Business, Lovely Professional University (Phg.), India ' ICFAI Business School, Hyderabad, India

Abstract: The prevalence of financial stress is high among individuals, resulting in negative psychological effects, including anxiety, depression, and behavioural modifications. This study aims to delve into the factors that ultimately effects financial stress. It sheds light on the critical role of financial stability (FST), financial inclusion (FI) and financial behaviour (FB) in reducing individual financial stress (FIN_ST). Using a purposive sampling technique, data was collected from 275 participants and analysed using PLS-SEM. The findings indicate that FI and FB significantly influence the financial stability among individuals, while financial stability has a significantly negative influence on financial stress, thus, helping in reducing the financial stress. The current study highlights the significance of financial behaviour and financial inclusion in promoting financial stability and reducing financial stress. By addressing these factors, individuals can attain financial stability, leading to improved mental health and well-being. These findings have implications for policy makers and government organisations to design policies that encourage financial inclusion to bring about financial stability, which can lead to reduced financial stress among individuals.

Keywords: financial behaviour; financial inclusion; financial stability; financial stress; partial least squares structural equation modelling; PLS-SEM.

DOI: 10.1504/IJSSOC.2026.151913

International Journal of Sustainable Society, 2026 Vol.18 No.1, pp.76 - 97

Accepted: 07 Apr 2024
Published online: 26 Feb 2026 *

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