The Relationship between Financial Wellbeing and Mental Health: A Systematic Literature Reviews

Abstract

The aim of this study is to identify and appraise existing relationship between Financial well-being and mental health. Despite abundance of studies on financial wellbeing and mental health, efforts to systematically review this study are still lacking. This article attempts to fill the gap in understanding and identifies the variables that influences the financial wellbeing and mental health. Systematic literature searches in Psychinfo, Scopus and Google Scholar databases were performed using the combinations words of “Financial well-being” „Indebtedness? or „Mental disorder? „Debt? and „Health? or „Depression? „Mental illness? or „Anxiety? or „Stress? or „Distress? or „Mental Health were used. The majority of studies (7 of 32) used questionnaires commonly used for measuring the variables between financial measures and mental health measures. The review identified 32 papers examining the associations of the relationship between financial wellbeing and mental health. findings also differed by the tools of measurement that using for each financial wellbeing and mental health. A total of 6 instruments for financial wellbeing and 12 instruments for mental health were found. Most instruments assessed different dimensions of mental well-being, with different subscales. This review provides a comprehensive review of relationships between financial well-being and mental health and also instruments used in assessing financial wellbeing and mental well-being

Impact of financial literacy, mental budgeting and self control on financial wellbeing: Mediating impact of investment decision making

“…This practice enables them to have a better grasp of their financial situation and make informed decisions regarding their spending habits and financial goals. Previous literature support this finding [22,56,60,61].…”

“…Multiple studies have been conducted to explore the relationship between mental budgeting and financial wellbeing in recent years. A systematic review by [60] identified the importance of proactive prevention, such as financial education and literacy, in reducing the burden of mental depression caused by financial stress. Similarly, mental budgeting was highlighted as a significant factor in promoting positive financial management behaviors, reducing financial stress, and improving financial wellbeing [61].…”