Trust in the government increases financial well-being and general well-being during COVID-19

Abstract

We investigate the antecedents of subjective financial well-being and general well-being during the ongoing COVID-19 pandemic. In an online survey conducted in the midst of COVID-19 pandemic with over 1000 Swedish participants we found that distrust in the government to cope with financial (but not healthcare) challenges of the pandemic was negatively related to the feeling of financial security. In a structural equation model, we also show that trust in government to deal with financial challenges of COVID-19 pandemic has a significant impact on general well-being through the mediating channel of financial well-being. In addition, trust in government to deal with healthcare challenges of COVID-19 pandemic has a significant direct impact on individuals’ general well-being. Our findings have important implications for public policy as they highlight the importance of citizens’ trust in well-functioning governmental institutions to help cope with not only healthcare, but also financial challenges of an ongoing pandemic.

Perceived coronavirus health risk associated with students’ life satisfaction: the role of trust in government policies

“…In alignment with the literature, Yu et al 42 find that government policies that are reducing factors of stress in citizens' livelihood and increasing convenience of their daily dealings would lead to higher life satisfaction compared to antecedent life satisfaction levels. In a similar fashion, Barrafrem et al 43 highlight that trust in government policies causes reduction of future anxiety and improves life satisfaction among citizens.…”

Opportunities to Increase Financial Well-Being by Investing in Environmental, Social and Governance with Respect to Improving Financial Literacy under COVID-19: The Case of Latvia

“…Researchers draw attention to the diverse impacts of the COVID-19 pandemic, including on health, well-being, and financial well-being. Moreover, it has been emphasized that financial well-being and fulfilment directly affect quality of life in general (mental health, relationships, joy, satisfaction with life) [69].…”

“…Trust in government is considered to be an important aspect that impacts financial wellbeing, since it provides security of individuals, the confidence of safety of their financial resources, especially in times if crises, such as the COVID-19 pandemic [69,85]. In this case, it should be noted that the trust in government to manage a crisis (pandemic) directly impacts the perception of society on their possible vulnerabilities, resilience against financial difficulties related to the pandemic [69], and the effect of different social factors [86,87].…”

The effect of financial knowledge and financial well-being on investment intention mediated by financial attitude

“…According to the Consumer Financial Protection Bureau (2017) defines financial well-being is a state in which a person can fully meet current and ongoing financial obligations, can feel secure in their financial future and can make choices that allow enjoyment of life. Barrafrem et al (2021) define financial well-being as a sense of security about one's financial situation and a lack of negative emotions (i.e., anxiety, worry) caused by financial problems. In addition, Eberhardt et al (2021) define financial well-being as the perception of maintaining the current and desired standard of living and financial freedom.…”