Abstract
Poverty, or the scarcity of resources, is a multifaceted phenomenon that shapes an individual’s identity,
capabilities, and circumstances. It manifests in various aspects of life, including insufficient resources to secure a
sustainable livelihood, poorer mental and physical health outcomes, and diminished levels of overall well-being.
Accordingly, the current paper assesses the effect of financial scarcity on financial well-being and then examines
the mediating role of financial self-efficacy in the link between financial scarcity and financial well-being. This
analysis utilised a quantitative, cross-sectional research design. Data were gathered from a sample of 159 young
adult women aged 18–40 years in Himachal Pradesh, India, and subsequently analysed through partial least
squares structural equation modelling (PLS-SEM). Our results indicate that financial scarcity significantly and
negatively affects both financial well-being and financial self-efficacy. Additionally, financial self-efficacy
significantly and negatively mediates the association among financial scarcity and financial well-being.
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