Exploration of financial stress indicators in a developing economy

Abstract

Financial stress scales need to be incorporated into the borrower selection procedure before providing a loan. The three financial stress scales that we examined have strong correlations, but the two involving at least eight questions are better for discriminating between poor and rich. The financial stress indicator that separates male and female students the most is whether financial problems interfere with relationships with other people (interference is more for men). Older students are less satisfied with their financial position and seem to think that their parents worry more about disappointing them for materialistic reasons.

Personal finance apps and low‐income households

“…Financial distress is shown to result in outcomes ranging from non‐payment to suicide (Ashta, Khan, & Otto, 2015). Financial stress scales should be incorporated into the borrower selection procedure (Utkarsh, Pandey, & Speigelman, 2020).…”

Impact of financial literacy models on the financial behavior of individuals: An empirical study on the Indian context

“…Many countries have realized the importance of financial literacy during and after the global financial crisis in 2008–2009 (Gerardi et al, 2010; Klapper et al, 2013; Lusardi, Mitchell, Klapper, & Van Oudheusden, 2011; Miller, Godfrey, Levesque, & Stark, 2009). For a developing economy like India, reduced financial education is a key mediator in the vicious circle of the impact of stress, increased cognitive difficulties, and poverty (Utkarsh, Ashta, & E., and Sutan, A., 2020).…”