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.
This study investigates the relationships among perceived competitive wage, job satisfaction, employee morale, and perceived financial well-being through a serial mediation model. Using a nationally representative dataset of 2,036 U.S. full-time employees under 50 years old, split evenly between state and local government and private sector workers, the study examines whether job satisfaction and employee morale mediate the impact of perceived competitive wage on financial well-being. Grounded in Self-Determination Theory and Equity Theory, the model hypothesizes that competitive wage perceptions improve financial well-being both directly and indirectly by fostering job satisfaction, which in turn enhances morale. Structural Equation Modeling (SEM) with control variables for age, gender, income, ethnicity, and marital status confirms significant direct and indirect effects. Results show that perceived competitive wage positively affects financial well-being, with job satisfaction and morale as significant mediators in this relationship. These findings underscore the importance of fair compensation and supportive work environments for enhancing financial well-being, suggesting that organizations can benefit from wage policies and workplace practices that promote satisfaction and morale. This study contributes to the understanding of workplace factors influencing employee financial health, with implications for human resource management and organizational policy.
Access to pediatric healthcare remains limited for many families, with provider shortages, financial constraints, and geographical obstacles restricting access. Virtual healthcare (telehealth) represents a promising tool to address these gaps, yet its effectiveness in improving pediatric health outcomes remains underexplored. This study leverages a unique dataset combining data from the only pediatric-focused telehealth provider in the United States and the University of Michigan's National Neighborhood Data Archive (NaNDA) Health Care Services Data. By assessing telehealth's potential to enhance access and improve health outcomes for underserved children, this study aims to inform policies and practices that align with ACCI's mission to improve economic well-being and consumer health outcomes, identifying effective models for telehealth implementation in pediatric care.
This study examined racial/ethnic, age, and gender differences in wealth persistence among U.S. older adults, focusing on housing wealth (non-liquid assets) and non-housing wealth (liquid assets), alongside household income, and further evaluated whether sense of purpose in life moderates these wealth differences in later life. Data were from the Self-Administered Questionnaire in the 2018 Health and Retirement Study. We estimated ordinary least squares regression models with interaction terms to evaluate moderation effects, adjusting for health, family statuses, and socioeconomic characteristics. Multiple moderation analyses revealed evidence that sense of purpose in life buffered against racial/ethnic and age differences in wealth, but not gender. Specifically, sense of purpose in life and income interacted uniquely for Hispanic older adults. Higher self-reported purpose in life is associated with higher levels of household income, non-housing wealth, and housing wealth. This effect was most pronounced among the youngest age subgroup (ages 51-64) and the oldest age group (ages 80+). We discuss the protective effect of sense of purpose in life in mitigating differences in wealth across various groups of older adults. Through further research and interventions, there is potential to bolster sense of purpose in life and systematically address wealth differences across the life course.
Focusing on the households enrolled in the WIC program, a particular federal food assistance program targeting at at-risk women, infants, and children, this study analyzed Nielsen consumer panel data and examined WIC-Nielsen participating households’ brand choice preference of their grocery shopping. The results suggest WIC-Nielsen participating households typically allocate less of their grocery shopping dollars on private label brand type stores than non WIC-Nielsen participating households.
People with the lowest socio-economic status, often ethnic minorities residing in impoverished neighborhoods, are disproportionately affected. Research studies employing a “bottom-up” approach offer excellent insights into the intersection of poverty and health. This research investigates the effectiveness of the Veggie Rx program by exploring participants’ sustained lifestyle changes and the dissemination of these new practices within their families and social networks 12 months after program completion. Despite the potential benefits of Veggie Rx, not everyone who participates in the program is able to make sustainable lifestyle changes. This is often due to various barriers, such as macroenvironment, socio-cultural environment, and patients’ internal factors, such as mental state and other health issues. By examining the lived experiences of individuals from underserviced communities, we can gain a deeper understanding of behavior change over time and assist health advocates in developing strategies to enhance community well-being.
The Supplemental Nutrition Assistance Program (SNAP), one of the few safety net programs universally available to low-income households, mandates work requirements for able-bodied adults without dependents (ABAWDs). SNAP work requirements have emerged as a significant point of contention in recent SNAP reauthorizations. Leveraging variation in work requirement exposure—based on recipient age and county-level waivers from 2014 through 2019—we examine how ABAWD work requirements affect household spending patterns. Analysis of NielsenIQ Consumer Panel data reveals that waiving SNAP work requirements for likely affected recipients increases total household spending by 7 percent and food expenditure by 6 percent, with more pronounced effects among households at or near poverty levels. Additionally, we find modest improvements in dietary quality, notably a 9 percent increase in fruit and vegetable consumption. While previous research finds that SNAP work requirements have minimal impact on labor supply, our findings suggest that SNAP work requirements may adversely affect the food security and nutritional quality of low-income households.
The study explores the relationship between savings and employment stability using the Survey of Consumer Finances (SCF) of 2022 and found that higher expectations of remaining with the current employer are associated with a reduction in savings. Additionally, net worth and having a college degree are associated with higher savings amounts, but age has the opposite relationship. The study also finds evidence that higher employment stability increases the odds of using other options to address financial needs rather than using their savings, specifically by working more. These results are relevant to the recent government intention in the US to improve the emergency savings of households with the SECURITY Act of 2022.
Households experience constraints around the use of total resources and must consider the cost of time when allocating their resources to maximize utility. When earnings increase, the relative cost of time also increases. This leads households to allocate more time to the workforce and outsource household tasks, such as childcare. The purpose of this research is to understand better the decisions married couples with young children make with their use of time and its impact on savings rates. Using data from the Panel Study of Income Dynamics (2021) this study provides information that will help couples with children make informed decisions about their allocation of time between household production and workforce labor.
This study investigates the association between disability status and the financial wellbeing of U.S. households, while also examining the moderating role of financial technology (Fintech) to explore the potential for technology-driven interventions for individuals with disabilities. Results from the 2021 National Financial Capability Study dataset show that disability status is negatively associated with financial satisfaction. Among the Fintech variables, online banking, mobile payment, and mobile task management are positively correlated with financial satisfaction, whereas mobile banking and mobile transfers are negatively correlated. Additionally, we found that Fintech plays a moderating role in the association between disability status and financial well-being, particularly for respondents with multiple disabilities. Specifically, mobile payment, transfers, and task management significantly improved financial satisfaction among individuals with multiple disabilities compared to non-users. These findings suggest that targeted Fintech solutions may help mitigate financial disparities faced by individuals with disabilities, underscoring the importance of accessible, inclusive financial technology.
The current study investigated the mediation effect of financial confidence on the relationship between fintech use and financial health among college students. From February to May 2023, a self-reported survey was conducted to collect primary data from college students. Structural equation modeling (SEM) was used to identify reliable factors with SPSS Macro Process Model 4. The results indicated that financial confidence fully mediated the relationship between fintech use and financial health. Fintech use was positively associated with financial confidence, and financial confidence predicted financial health. Moreover, the direct impact of fintech use on financial health was insignificant. The findings indicate that fintech should be adopted as a tool to shape young adult consumers’ financial health by building their financial confidence. Financial institutions, financial planners, and governments should apply these empirical findings to their potential young adult clients.
In today’s digital age, financial technology (fintech) innovations are revolutionizing the way individuals and businesses manage financial transactions and services. As more individuals rely on digital platforms for financial management, understanding the psychological and cognitive factors that influence the adoption of fintech becomes essential. A key aspect of this study is the incorporation of IT-mindfulness, a concept derived from mindfulness research but adapted to reflect how users engage with technology. This study employs the Technology Acceptance Model (TAM) to explore the determinants of fintech adoption. This study extends TAM by incorporating IT-mindfulness as a precursor to these traditional determinants, hypothesizing that users who exhibit higher levels of IT-mindfulness are more likely to perceive fintech platforms as easy to use and useful. Moreover, this study introduces digital technology self-efficacy and financial literacy as key variables in understanding fintech adoption. This comprehensive model aims to provide a deeper understanding of how cognitive factors like IT-mindfulness interact with traditional TAM variables and personal competencies to influence users' fintech adoption behaviors.
This study examines the relationship between technology readiness, adoption of digital financial services (DFS), and financial well-being among individuals in Maharashtra, India. Using primary data from 715 respondents and employing structural equation modeling, the research analyzes how technology readiness influences DFS adoption and subsequent impacts on financial well-being. The Technology Readiness Index measures propensity to embrace new technologies, while custom indices assess DFS adoption and financial well-being. Key findings indicate technology readiness positively influences DFS adoption, which in turn significantly improves financial well-being. Demographic factors like age, education, and income moderate these relationships. Notably, while DFS adoption generally enhances financial well-being, impacts vary across socioeconomic groups. The study provides insights for tailoring DFS offerings and financial education programs to different consumer segments, potentially improving equity in financial services access. Results can inform strategies to build consumer financial resilience through targeted interventions addressing DFS adoption barriers. This research contributes to understanding how digital financial inclusion can enhance consumer well-being, with implications for policymakers and financial service providers in developing economies.
The present study aims to bring conclusive findings on how an individual’s personal finance contributes to his/her subjective well-being. By following Amartya Sen’s Capability approach, the present study created a model and analysed the influence of personal finance on the subjective well-being of U.S. adults through three distinct dimensions of personal finance: objective financial well-being, subjective financial well-being and financial capability. The relationship has been analysed by taking 4705 U.S. adults data from the 2016 National Financial Well-Being Survey (NFWBS) conducted by the Consumer Financial Protection Bureau (CFPB). Structural equation modelling was used to analyse the relationships. The results reveal that subjective financial well-being significantly contributes to subjective well-being, whereas objective financial well-being does not. However, it is found that objective financial well-being has an indirect significant positive effect on subjective well-being through subjective financial well-being (full mediation). Further, the study revealed that financial capability has a positive impact on objective financial well-being, subjective financial well-being, and subjective well-being. A serial mediating relationship has been found between financial capability and subjective well-being through objective financial well-being and subjective financial well-being.
Financial discrimination is a complex issue that demands attention. It perpetuates poverty and inequality among people of color, women, and other marginalized groups, limiting their ability to accumulate wealth. This, in turn, fosters economic instability and undermines the nation’s economic health. In this study, we investigate whether racial and ethnic disparities in financial discrimination persist after controlling for various factors. First, we examine racial and ethnic disparities in overall societal discrimination using the full sample. Then, we focus on three domains of financial discrimination, measured by respondents' experiences in the (a) labor market, (b) financial market, and (c) housing market, using a subsample of those who had experienced societal discrimination. In addition to racial and ethnic disparities, we control socio-demographic characteristics.
Financial behavior is crucial for young adults’ consumer protection. And even though the topic has been augmented with a beyond-rationality approach, it is predominantly researched on an ad-hoc basis. Available longitudinal studies are based primarily on panel data or tackle the effectiveness of educative programs. The main aim of this paper is to investigate how the diverse financial behaviors of young adults change over time and how rational thinking dispositions moderate financial behavior. The final sample of 862 young adults (16-28) in Croatia was collected in two waves with a minimum elapsed time of one year. Using a multilevel, mixed-effects model. For four out of six dependent variables (Responsible financial behavior, financial planning, impulsive consumption, and investing experience) the interaction between time and CFC difference was significant meaning that the difference in dependent variables was contingent on the CFC difference. These results indicate that the change in various (responsible) financial behaviors is accompanied by the change in rational thinking dispositions among young adults. The insights provide a valuable foundation for generating novel educational policies and for further experimental research in financial behavior.
Cancer survivors often experience significant financial challenges due to the high treatment costs, a problem known as financial toxicity. The link between financial distress and financial well-being has yet to be thoroughly studied. This research examines financial toxicity and financial well-being among cancer survivors and identifies the demographic and clinical factors influencing these outcomes. Financial distress was measured using the 11-item COmprehensive Score for Financial Toxicity (COST), lower scores indicating greater financial toxicity. Financial well-being was assessed using the 5-item Consumer Financial Protection Bureau (CFPB), lower scores indicating poorer financial well-being. Linear regression analyses were conducted to identify significant COST and CFPB score predictors. _x000D_ Females had lower CFPB scores than males (Difference: -6.5, 95% CI: [-11.7, -1.3], p
This study aims to examine the association between financial knowledge, the use of a financial planner, and the financial planning horizon. Additionally, we investigate the moderating role of financial planner usage on the relationship between financial knowledge and the financial planning horizon. For the empirical analysis, we used a pooled dataset from the 2016–2022 Survey of Consumer Finances (SCF), allowing for a comprehensive view across multiple time points. Our findings offer valuable insights for educators, practitioners, and policymakers by highlighting how financial knowledge and professional guidance can shape individuals’ long-term financial planning behaviors. This research contributes to the broader understanding of how personal financial management strategies and access to financial expertise can influence financial preparedness and planning horizons.
Retirement planning faces the challenge of varying life expectancy, influenced by factors beyond standard age and gender measures, such as income, health, and environment. Traditional reliance on generalized actuarial tables may lead to suboptimal financial outcomes for individuals. This study emphasizes the benefits of integrating personalized longevity projections to enhance retirement strategies, especially for optimizing Social Security benefits. A Cox proportional hazard model is estimated using data from the Health and Retirement Study to project personalized longevity. Then, this study found that tailoring the estimated optimal claiming age for benefits significantly increases the present value of lifetime benefits. Findings reveal that personalization can yield an average lifetime increase of over $12,000 for men and $9,000 for women. The evidence suggests that personalized longevity approaches can better align financial plans with individual life expectancy, enriching clients' understanding and retirement readiness.
