“

Proposal Defense
SUPERVISOR: SIR SYED SALMAN ”
Ghulam Nabi BS Com Mola Baksh BS Com

Muhammad Iqbal BS 8th Semester

A&F
Research Topic

Psychological Determinants Of Household

Financial Sustainability : The Perspective Of
Middle Class Employees Of Karachi
Significance

According to economists, the Pakistani economy is on the verge of declaring default and is in urgent need of more exports to
balance its trade imbalance, which may be achieved by expanding the country's business sector rather than relying on
remittances. It is crucial to maintain business sector because the Pakistani economy is instable, making it possible for
corporations to grow and ultimately declare bankruptcy This problem can be complicated by identifying potential bankrupts and
the factors that go along with them. Few people go bankrupt due to a lack of financial responsibility or failure to manage their
finances. The majority of bankruptcies are caused by financial distress rather than reckless spending, and many are low-income
individuals who are unable to cope with unexpected significant costs, such as work loss or medical expenses. Debt restructuring
options, such as debt management plans, debt consolidation loans, and debt arbitration, may be used by employers as a way to
avoid bankruptcy. Various variables have all the earmarks of being consistently linked with FS, according to academics.
Demographic and socioeconomic characteristics, such as age, gender, ethnicity, education, marital status, and income, are the
most generally known criteria. Although certain demographic factors have been linked to FS, other variables such as financial
attitude, and financial self-efficacy (Sabri et al., 2020) may also have an effect. As a result, the primary goal of this study is to
investigate the factors that influence FS among middle class employees working in any sector of Karachi.
Previous study finded out the effects of financial behavior,, financial attitude, financial self-efficiency in manufacturing industry
in Malaysian context but this study will cover middle class households of Karachi
In Karachi, working class are mostly middle class employees this study will help us in discern the financial sustainability of
middle class employees to by which corporates can further arrange the need and financial distress of employees increase in the
firm productivity.
Problem Statement

A prudent spending pattern and a healthy savings account balance are important factors in
determining personal well-being. they have an effect on workers’ mental and physical well-
being, as well as improving workplace performance by enhancing the responsibilities of their
employment. A disparity in FS among employees, on the other hand, could have a negative
impaction the productivity of the organization employees who are financially ill are often
depressed and distracted, which has a negative impact on absenteeism, productivity,
retirement, and medical costs. As a result, employee well-being is a vital aspect that
companies strive to deliver in order to ensure that their employees remain satisfied and
motivate at work. In the end, a happy workforce not only means a productive workforce, but
also a productive work environment. So this study is focuses on to investigate the factors that
influence financial sustainability among employees of middle class employees working in any
sector of Karachi.
Objective

 What is the financial sustainability of middle class low income households.

 It has been attempted to clarify a view of the FS and discern what factors lead to FS or
wellness.

 To fill the research gap by examining the effects of financial attitude, financial behavior,
and financial self efficiency on financial sustainability with the change of demographics.
Research Questions

1. How the financial sustainability of typical middle-class workers in Karachi is influenced to

what extent by their financial attitude, financial behavior, and their level of financial self-
efficacy"?
2.which phcological factor does explaine the impact more adequetly.?
3.what change can be demographics can play ?
Methodology

This is the descriptive study was adopted a quantitative approach and cross-sectional design. The data
was collected through self-administrated questionnaires. Using random sampling, a total of 284
employees working in manufacturing sector in Malaysia was considered as study sample. As previous
study we will conduct quantitative approach and cross-sectional design but we collect data from middle
class households in Karachi because we are conducting this study in perspective of middle class
households Karachi as I mentioned above previous study in the perspective of Malaysian manufacturing
sector.
Conceptual Framework
 Litterateur Review

Serial Topic Author Findings

1 Measuring the financial sustainability and its
influential factors in local governments
2 Performance measurement, intellectual capital and
financial sustainability
Andrés Navarro-Galera income statement is a good approach for the financial
, sustainability assessment, because it reveals relevant
Manuel Pedro Rodríguez-Bo information about its three dimensions, allowing to
lívar identify the specific factors which could provoke
,Laura Alcaide-Muñoz sustainability problems on public services.
 &María Deseada
López-Subires
Ricardo Vinícius Dias Jordão IC influences positively the profitability and corporate
,  return of these companies; the more intangible-intensive
Vander Ribeiro de Almeida  public companies listed on the BM&Fbovespa
demonstrate higher financial sustainability than the others,
in terms of profitability and corporate return, either
individually, globally or by industry; and that IC helps
increase financial performance, systematically, over time.
Serial Topic
3 Stability and Vulnerability of the Latin
American
Middle Class
4 The determinants of household saving: The
South African Black middle class
Perspective.
5 The influence of money attitude, financial
practices, self-efficacy and emotion coping
on employees’ financial well-being
Author
Florencia Torche & Luis F.
Lopez-Calva
Hlayiseka Morgan Chauke
Findings
Rural middle-class households are substantially more
vulnerable to falling Into poverty and have little chance of
advancing to upper classes than their urban counterparts.
It is noted that it is critical but complex to research saving in
South Africa, and in particular among Black middle class
South Africans. Further research is needed to clearly
understand the challenges facing South Africans and to try to
find ways to improve saving. There is a need to research And
educate Black communities in this country to improve self-
dependency and Economic sustainability.
The findings of this study are beneficial to the government,
and Non-Governmental Organizations (NGOs) to create a
comprehensive approach specially to advance the living
standards, and enhance the FWB of the lower-household
income cluster of employees. More comprehension about the
determinants of FWB plays a vital role to support workers to
equip with financial prudence, and in the long-run would
minimize the rate of Malaysian workers with financial
difficulties.
Thank YOU