The Moderating Role of Trust in Financial Institutions in the Relationship Between Financial Capability and Financial Management Behavior During Economic Uncertainty

Financial capabilities may support effective financial management behaviour, but their relationship with behaviour may depend on individuals’ trust in financial institutions. This study examines whether institutional trust moderates the relationships between financial literacy, financial education, access to financial information, and financial management behaviour in Jordan. Drawing on institutional trust reasoning, the study analyses an online survey of 535 Jordanian adults collected in July 2026 through convenience and snowball sampling, using partial least squares structural equation modelling. Financial literacy (β = 0.218, p = 0.001), financial education (β = 0.231, p = 0.001), and access to financial information (β = 0.298, p = 0.001) were positively associated with financial management behaviour, with information access showing the largest reported direct coefficient. The moderation effect results indicate that these relationships were stronger at higher levels of institutional trust. Positive interactions were reported for access to financial information (β = 0.157, p < 0.001) and financial literacy (β = 0.134, p = 0.002). The interaction involving financial education was smaller and borderline significant (β = 0.109, p = 0.048), warranting cautious interpretation. The model explained 38.9% of the variance in financial management behaviour. The study contributes by examining institutional trust as a boundary condition linking financial capabilities with financial behaviour in the surveyed sample. The findings suggest that financial capability initiatives should consider institutional credibility and the perceived reliability of financial services and information. However, non-probability sampling design utilized may limit generalizability of the findings.