The impacts of perceived risk and risk propensity on financial well-being: an application on bank employees

Purpose- This study seeks to determine the impact of perceived risk on risk propensity and the impact of both variables on financial well-being. Methodolgy- The questionnaire prepared by using the Perceived Risk and Risk Propensity scales obtained from the study of Hunjra et al. (2017) and the Financial Well Being adapted from the study of Norvilitis et al. (2003) was applied to 679 employees in banks operating in Balikesir province and the results were analyzed and interpreted using SPSS 22 and AMOS package programs. Findings- It has been determined in the research that the effect on the risk propensity of perceived risk is negative and meaningful and the effect of perceived risk on the existing financial condition and future financial situation expectancy dimensions of financial well-being determined to be in significant. It has been determined that the effecwt of risk propensity on the existing financial condition and future financial situation expectancy dimensions of financial well-being is negative and meaningful. It has been also determined that the effect of the existing financial condition dimension of financial well-being on the future financial situation expectancy dimension of financial well-being positive and meaningful. Conclusion- As a result of there search, it is determined that individuals with high risk perception have a low risk propensity and those with high risk propensity will not see themselves very well financially, the expectation of the future financial situation of those who feel good financially in the current situation is also positive.