This research examines how cultural values predict financial health, focusing on two dimensions: financial security (the ability to manage financial shocks) and financial control (confidence in day-to-day financial management). Using data from Gallup's 2018 Financial Health Survey and the Global Preferences Survey across ten countries, the study explores cultural factors, such as patience, risk-taking, reciprocity, altruism, and trust, alongside demographic factors like age, education, income, and employment. A multilevel regression model enables an analysis of how these elements contribute to financial health outcomes. Results show that patience plays a crucial role in financial security and control, as individuals with greater patience tend to engage in stable, long-term financial planning. Conversely, a propensity for risk-taking is associated with less financial security, potentially due to impulsive financial choices that may hinder long-term security. Positive reciprocity supports financial control, whereas altruism, by focusing on others' needs, slightly diminishes personal financial security and control. The results highlight the need for financial education programs that encourage long-term planning and risk awareness, as well as policies that integrate cultural values and demographic insights. These tailored interventions can improve financial health across diverse populations, equipping individuals to face financial challenges effectively.
Results from a study in the United States with a primarily Catholic population show that there are indeed two discernible forms of religiosity (i.e., intrinsic and extrinsic), and both constructs were shown to be independent from spirituality. Furthermore, intrinsic religiosity was shown to negatively influence materialism, while extrinsic religiosity was shown to positively influence materialism and community connectedness. Spirituality negatively influenced materialism and positively influenced life satisfaction. Finally, materialism negatively influenced community connectedness but not life satisfaction while the latter two constructs were shown to be strongly positively correlated. Implications for understanding human values as well as future research questions are also discussed.
This study examines the relationship between human values and saving behavior and analyzes the concepts of personal and cultural values. Drawing from a globally representative sample, we utilized data from the seventh wave of the World Values Survey (2017–2020) and Hofstede Insights (2022), encompassing 67,278 respondents across 48 countries. Two analytical steps were employed: Principal Component Analysis (PCA) to ensure that the selected items accurately measured personal values and a multilevel logit regression to identify associations between personal (individual level) and cultural (country level) values and saving behavior. Based on the Functional Theory of Values, our findings reveal that individuals with personal values of personal orientation and survival needs tend to save more money, while those with personal values of social orientation and thriving needs are less likely to save. At the cultural level, people in individualistic societies save more, whereas those living in countries with high uncertainty avoidance tend to save less.
Prior research has established through a variety of techniques that Black and Latinx consumers generally have lower credit scores than white and Asian consumers. However, this research has often relied on datasets lacking respondents’ self-reported racial identity or has not been nationally representative, which can introduce bias into estimates. Further, while a substantial amount of recent research has uncovered racial and ethnic disparities in debt repayment and delinquency, there has been limited exploration into how other aspects of consumers’ credit histories, such as length of credit history, are contributing to credit score gaps. In this paper, we address these gaps by debuting an innovative data source – credit records matched to a nationally representative probability-based survey panel – to better understand disparities in credit scores. We use this data to estimate racial and ethnic gaps in credit scores and to explore one important source of score disparities: differences in length of credit history. We find large disparities in credit scores and length of credit history by race and ethnicity. We also find that two mechanisms used to establish and lengthen credit histories – joint account ownership and authorized usership – are less frequently utilized by Black consumers.
Existing research highlights significant racial and ethnic disparities in economic hardship, leading to reduced consumer well-being. Financial capability is positively associated with financial well-being, suggesting that enhanced financial capability should correlate with a reduced risk of economic hardship, thereby decreasing these disparities. However, the role of financial capability in mitigating economic hardships during crises, such as the COVID-19 pandemic, remains underexplored. This study addresses this gap by utilizing decomposition analysis of the 2022 Survey of Consumer Finances data to examine whether financial capability reduces racial and ethnic disparities in economic hardship during the pandemic._x000D_ The findings of this research are crucial for policymakers, financial educators, community organizations, and other stakeholders dedicated to addressing financial hardship and promoting economic equity. By implementing targeted policies and programs that cater to the specific needs of minority groups, these stakeholders can work towards reducing financial disparities and promoting equity. This study not only advances our understanding of the dynamics between financial capability and economic hardship but also provides practical insights to improve consumer well-being and foster economic equity.
This study examines racial/ethnic differences in household debt payment delinquency among U.S. renters and homeowners. Using the 2022 Survey of Consumer Finances (SCF), the research investigates racial/ethnic disparities in delinquency rates controlling for the financial obligation ratio, financial knowledge confidence levels, and other household characteristics. Renter and homeowners are analyzed separately. Renters typically experience higher financial burdens, dedicating a larger share of their income to rent, leading to increased vulnerability to debt delinquency. The study utilizes logit regression models to explore the impact of racial/ethnic status on debt payment delinquency. Renter households have much higher delinquency rates than homeowner households. Black renters have significantly higher delinquency rates than White renters, and Black homeowners have significantly higher delinquency rates than White homeowners, even when controlling for household characteristics. Asian and Hispanic renters and homeowners do not have significantly different delinquency rates than corresponding White renters and owners. The results highlight the importance of separating renters and homeowners in debt analysis and suggest the need for targeted interventions to reduce racial and ethnic disparities in financial vulnerability.
