ABAC Journal Vol.40 No.1(January-March, 2020, pp 85-108) 85 BOOSTING FINANCIAL LITERACY: ITS ROLE IN ENHANCING QUALITY OF LIFE 1 Dalina Amonhaemanon 2,* and Sangarun Isaramalai 3 Abstract The focus of this study was on the effect of financial literacy on enhancing people’s quality of life, based on three aspects; financial knowledge, financial attitude, and financial behavior. The questionnaire used in data collection was divided into two main parts, one evaluating the respondents’ financial literacy and the other evaluating their quality of life. The first part was adapted from surveys of financial literacy conducted by the OECD and the BOT. The 26 questions used to evaluate quality of life were adopted from the World Health Organization’s Quality of Life assessment for Thailand (WHOQOL-BREF- THAI). The sample group was selected using non-probability convenience sampling which applies no selection criteria in the sampling and mainly relies on the cooperation of the respondents, all of whom live in Trang Province. The survey was administered to 1,310 people aging from 15 to 65, who answered the questionnaire. Analysis of the data consisted of structural equation modeling. The study found that levels of financial literacy affect people’s quality of life. The most influential component was behavior supported by the right attitude. Another interesting finding was that a higher level of financial knowledge does not automatically help to improve people’s quality of life. The government can take action to raise the level of financial literacy, but people are also required to change their attitudes to the point that they also transform their behavior. Moreover, people need to thoroughly understand and effectively apply the knowledge gained. Keywords: financial literacy, financial knowledge, financial attitude, financial behavior, Structural Equation Model (SEM) 2,* Dr. Dalina Amonhaemanon is a lecturer at Faculty of Commerce and Management, Prince of Songkla University, Trang Campus, Trang, Thailand 92000. Email: dalina.a@psu.ac.th 3 Dr. Sangarun Isaramalai is an Assistant Professor at Faculty of Nursing, Prince of Songkla University, Hat Yai Campus, Songkhla, Thailand 90112, Email: isangarun@hotmail.com 1 This work has supported by the Thailand Research Fund (TRF) in collaboration with the Office of the Higher Education Commission (OHEC), Ministry of Education, Thailand under Grant MRG 6080205.