Theoretical Framework

The conceptual model of this study is supported by two foundational theories including the
family resources management model and the theory of planned behavior. The family resource
management model, as given by Deacon and Firebauge (1988), shows that decision process includes
connected sequences started by inputs and continued by throughput, output and the feedback linking
back to the inputs. Parrotta and Johnson (1996) modified that model by defining financial knowledge as
the input, financial attitude and financial management behavior as two subsystems of the throughput.
This is called financial management conceptual framework to investigate effects of financial knowledge
and financial attitude on financial management behavior. In addition, the theory of planned behavior of
Ajzen (2002) concludes perceived control over performance of a behavior, which may be perceived by
some as being similar to locus of control, can account for a considerable variance in actions. In summary,
combining the financial resource management model and the theory of planned behavior gives a
general view on the relationship between financial behavior and financial attitude, financial knowledge,
locus of control.