The Influence of Attitude to Money on Individuals’ Financial Well-Being

Castro‐González, Sandra; López, Sara Fernández; Rey‐Ares, Lucía; Pazos, David Rodeiro

doi:10.1007/s11205-019-02219-4

Cited by 64 publications

(56 citation statements)

References 63 publications

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“…Overall, these results indicate that financial risk tolerance has a positive effect on FWB. These results support the view of (Castro-González et al, 2020:Gibson et al, 2013:Hoffmann et al, 2015 Hypothesis 5 Hypothesis 5 was evaluated to determine the relationship between perceived risk and financial well-being. SEM results are shown in the table.…”

Section: Hypothesissupporting

confidence: 66%

The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan

Ali

Rehman

Maqbool

et al. 2021

JAFEE

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Individual financial well-being is recognized as a major concern for the general welfare and social welfare of society. In this context, it is very important to understand how people can ensure good financial well-being. This article aims to explore the effects of financial literacy, risk tolerance, and risk perception on the financial well-being of individuals, with an emphasis on behavioral investment interventions. Quantitative research methods are used to measure the factors that affect financial well-being. A questionnaire was developed on Google Forms to collect data from people who have bank accounts. The sample of 318 Pakistanis supports the proposed hypothesis. Structural equation modeling (SEM) was used to evaluate the results. The results show that risk tolerance, risk perception and financial literacy influence people's investment behavior and ultimately their financial well-being. Individual financial behavior needs to be improved. In this context, there is an urgent need for financial education programs in the education system and centers of employment, behavioral development and financial literacy. Future research on this topic could benefit from collecting longitudinal data which could provide more relevant information for Pakistanis seeking to achieve better financial well-being. All measures used are reported separately and individually, measuring the risk that respondents will misinterpret questions and even interpret their behavior.

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Section: Hypothesissupporting

confidence: 66%

The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan

Ali

Rehman

Maqbool

et al. 2021

JAFEE

View full text Add to dashboard Cite

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“…Value of the coefficient of determination ( R 2 ) extracted for perceived FWB is 26%, and responsible FinB is 22.7%. These are considered as moderate values (Ramalho and Forte, 2019 ; Castro-González et al, 2020 ), especially in consumer behavior regarding finances. This value of variance is at par with or above those accounted for by other recent studies formulating complex FinB models by PLS-SEM in developing countries (Ali et al, 2015 ; Ramalho and Forte, 2019 ; Zulaihati et al, 2020 ).…”

Section: Resultsmentioning

confidence: 99%

Understanding the Path Toward Financial Well-Being: Evidence From India

2021

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Many countries are taking steps to establish national strategies to improve the financial well-being (FWB) of their people. However, FWB as a term is still in the infancy stage with a handful of models developed in the context of developed countries. Thus, there is a need to understand FWB from a multi-disciplinary and multi-dimensional approach to draft and implement efficient strategies, especially in the context of developing countries like India. In this study, we have performed path analysis to identify the specific constituents of financial literacy, financial behavior (FinB), and personality traits that affect the FWB (perceived and objective) of an individual in Indian context. Survey responses of 349 respondents are analyzed to empirically validate the proposed relationships using the partial least squares structural equation modeling (PLS-SEM) approach. The analysis mostly provides support to existing literature and challenges some. The findings provide support to 12 out of 17 tested effects with eight hypotheses. The understanding of pathways that lead to increased FWB of individuals has the potential to facilitate effective policy-making and designing of curriculum to support efforts of individuals toward higher FWB and responsible FinBs.

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“…This technique of analysis is used by scholars to examine relationships between financial constructs (i.e. Gerrans et al ., 2014; Weisfeld‐Spolter et al ., 2018; Castro‐González et al ., 2020). The measured constructs were the results of reflective indicators.…”

Section: Methodsmentioning

confidence: 99%

“…Financial satisfaction is an indicator of financial well‐being and an important constituent of overall life satisfaction (Woodyard & Robb, 2016). Financial satisfaction varies across nations (Diener & Diener, 2009), and it is a function of financial constructs and individual demographics (Strömbäck et al ., 2017; Xiao & O'Neill, 2018; Castro‐González et al ., 2020). Although there is an adequate body of research covering different interconnections between financial satisfaction and its determinants, yet there is a growing need to investigate the influences of financial constructs on financial satisfaction in a cultural context.…”

Section: Introductionmentioning

confidence: 99%

The Role of Financial Capability and Culture in Financial Satisfaction

Çera

Khan

Belás

et al. 2020

J of App Econs and Policy

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This paper presents an integrated framework for understanding the determinants of financial satisfaction in the context of two European nations with different cultural environments. The direct, indirect and interactive effects were tested through the path analysis method. It was found that to be financially capable is imperative because it governs the impacts of financial attitude and financial knowledge on financial satisfaction. Moreover, findings show that culture matters in explaining differences between countries. Hence, individualistic societies, compared to collectivistic ones, reflect a stronger relationship between financial attitude and financial satisfaction. Additionally, countries showing a high propensity in avoiding uncertainty reflect a negative association between risk tolerance and financial satisfaction, while those lacking such preference manifest a positive relationship.

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The Influence of Attitude to Money on Individuals’ Financial Well-Being

Cited by 64 publications

References 63 publications

The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan

The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan

Understanding the Path Toward Financial Well-Being: Evidence From India

The Role of Financial Capability and Culture in Financial Satisfaction

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