The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach

Gerrans, Paul; Speelman, Craig; Campitelli, Guillermo

doi:10.1007/s10834-013-9358-z

Cited by 136 publications

(159 citation statements)

References 21 publications

(29 reference statements)

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“…Financial well-being also is an outcome of financial behaviors (Kim, J., Garman, E.T., Personal financial wellness is composed of four sub-components: objective status; financial satisfaction; financial behavior; and subjective perception. Conceptually, financial wellbeing taps into the broader range of subjective and objective dimensions as financial wellness does, but has invariably been operationalized as a subjective measure only, more in keeping with financial satisfaction (Gerrans, P., Speelman, C. & Campitelli, G., 2014).…”

Section: Terms and Theoretical Frameworkmentioning

confidence: 99%

Financial Wellbeing as a Type of Human Wellbeing: Theoretical Review

Zemtsov¹,

Osipova²

2016

The European Proceedings of Social and Behavioural Sciences

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The article analyzes the term structure of the "wellbeing" concept and describes the various approaches to its definition (theoretical, statistical). Special attention is paid to the concept of financial wellbeing, the factors affecting it and its defining. The authors introduce quantitative indicators, which have a framework nature and starting with them we can speak about financial wellbeing of typical households: minimum consumer budgets that allow householders to live, to develop and to achieve their goals. This research integrates two conceptions in a model of personal well-being: theory of subjective wellbeing of theory of different forms of the capital. Personal well-being consists of physical, psychological (including emotional and mental), social and financial wellbeing. All components of wellbeing are connected with forms of capital, which belong to a person (physical health, capital, social and financial capital). Financial wellbeing defines by financial behavior and income flow generated by basic asset. Financial behavior is an outcome of financial literacy and knowledge, financial attitudes and financial management.paper.

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Section: Terms and Theoretical Frameworkmentioning

confidence: 99%

Financial Wellbeing as a Type of Human Wellbeing: Theoretical Review

Zemtsov¹,

Osipova²

2016

The European Proceedings of Social and Behavioural Sciences

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“…Whilst financial wellness is regarded as a complex multidimensional construct (Joo, 2008), it is conceptually based on objective and subjective indicators of financial well-being (Delafrooz & Paim, 2011;Gerrans, Speelman & Campitelli, 2014). Objective financial well-being indicators refer to quantifiable and unbiased aspects of an individual's economic position, such as income, actual debt, and savings or assets (Rutherford & Fox, 2010).…”

Section: Financial Well-beingmentioning

confidence: 99%

“…Subjective measures of financial well-being, such as perceived ability to meet expenses, satisfaction with one's financial condition, worry about one's debt, and perceived manageability of debt and savings, provide invaluable insight with regard to one's financial wellness that is not achieved through objective measures alone (Delafrooz & Paim, 2011). According to Gerrans et al (2014), subjective measures may shed light on an individual's level of financial distress or satisfaction. Yin-Fah, Masud, Hamid, & Paim (2010) take a behavioural perspective, defining financial well-being as the outcome of financial practices, including financial literacy, attitudes to money, and the process according to which financial resources are managed.…”

Section: Financial Well-beingmentioning

confidence: 99%

Sense of coherence: A distinct perspective on financial well-being

Barnard

2016

SAJEMS

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With the ongoing financial challenges being faced in the economic environment, research exploring financial and psychological well-being is of significant value because employees' socio-economic behaviour affects productivity. Research emphasises mainly the effect of income level on psychological well-being, and its orientation to psychological well-being is narrowly derived from a focus on subjective well-being constructs. This study addresses the research gap by exploring the relationship dynamics between sense of coherence, income level and financial well-being. Secondary data were obtained from a cross-sectional online employee-wellness survey (n=7 185). The sample distribution included 66 per cent females and 34 per cent males from various age groups, with 46 per cent of the sample comprising single-household earners and 54 per cent sharing household income. Analysis of variance was conducted to examine the relationship dynamics between sense of coherence, level of income and financial well-being. Demographic variables that formed part of the survey results were included in the analysis. The relationships between sense of coherence and identified significant income level, financial well-being and demographic effects were further explored in Bonferroni multiple comparisons of means test and cross reference frequency tables that included Pearson's chi-square and/or Cochran-Armitage trend tests. Detail results indicate that high-income employees exhibit a significantly stronger sense of coherence than low-income employees, and that, despite level of income, financial wellbeing is nevertheless positively related to sense of coherence. Results indicate important implications for managing a financially healthy workforce. Limitations are discussed and recommendations for future research are highlighted.

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“…However, these studies have not been conclusive on a single agreed approach to measure financial well-being of an individual (Joo & Grable, 2004;Robb & Woodyard, 2011;Gerrans, et al, 2014). All these studies concur that financial well-being is subjective and it is dependent on contexts and circumstances as perceived by the individual to bring a certain level of satisfaction.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This study also acknowledges the dependencies of all the components that affect financial well-being as discussed by Gerrans et al (2014). Financial satisfaction will be used as a proxy to determine financial well-being (Hira & Mugenda, 1998;Xiao, et al, 2008;Robb & Woodyard, 2011;Ali, et al, 2015;Taft, et al, 2013) as there is no agreed approach towards measuring financial well-being (Joo & Grable, 2004;Robb & Woodyard, 2011;Gerrans, et al, 2014).…”

Section: Conceptual Frameworkmentioning

confidence: 99%