THE EFFECTS OF RISK PROPENSITY ON FINANCIAL WELL-BEING: AN APPLICATION ON BANKING EMPLOYEES

Purpose- One of the most important factors affecting individuals’ financial well-being is the financial behaviors of individuals as mentioned in the related studies. The risk propensity is defined as the risk taking tendencies of indivudials in the literature. In the studies conducted, it is seen that as individuals prefer risky investment instruments, risk propensity increase; financialbehaviors affect financial well-being level, while rational financial behaviors increase one's level of financial well-being whereas mismanaged financial processes leave someone with short and long term problems. This study aims to determine the impact of risk propensity on financial well-being. Methodology- A face-to-face survey was conducted with the employees of the banks located in the Gulf region of Bal？kesir Province during the implementation phase of the workshop. The risk propensity scale from the study of Hunjra and Qureshi (2017) and the financial well-being scale developed by Norvilitis, Szablicki and Wilson (2003) used in this study. The data obtained from the questionnaire were subjected to statistical analysis and the results were interpreted. Findings- A negative relationship between the risk propensity and the future financial situation expectation which is one of the sub-dimension of financial well-being, was determined in the study. A positive relationship between the present financial situation and the future financial situation expectation which are the sub-dimensions of financial well-being, was also detected. It has been determined that the risk propensity is negatively and low-level influencing the future financial condition expectation which is the sub-dimension of financial well-being. Conclusion- As a result of the study, it was determined that the risk propensity has a negative and low-level effect on the future financial situation expectation dimension of financial well-being. This situation can be explained that the higher risk propensity increases financial expectations and in terms of future financial situation the individuals see inadequate themselves compared to the higher expectations formed, conversely with lower risk propensity individuals see adequate themselves in terms of future financial situation because of not the higher financial expectation