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Young adults’ personality traits and subjective well-being: The role of perceived money management capability

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  • Fan, Lu
  • Chatterjee, Swarn
  • Kim, Jinhee

Abstract

This study examines the association between personality traits and subjective well-being (SWB) of young adults, the mediating role of perceived money management capability (PMMC), and whether these associations differed by gender. Using the 2015 wave of the Transition into Adulthood Supplement study of the Panel Study of Income Dynamics, this study finds that several personality traits, including extraversion, conscientiousness, and agreeableness, were positively associated with SWB, while neuroticism was negatively associated with SWB. PMMC was positively associated with SWB and partially mediated the relationships between extraversion, conscientiousness, neuroticism and SWB. Furthermore, gender differences were observed in the associations between personality traits and SWB. Although four of the five personality traits, with the exception of openness, were consistently associated with SWB for young men and women; gender differences were found in the relationships between personality traits and PMMC. The mediating role of PMMC also differed by gender. Discussion and implications of the findings for policymakers and scholars are included.

Suggested Citation

  • Fan, Lu & Chatterjee, Swarn & Kim, Jinhee, 2022. "Young adults’ personality traits and subjective well-being: The role of perceived money management capability," Journal of Behavioral and Experimental Finance, Elsevier, vol. 35(C).
    • Handle: RePEc:eee:beexfi:v:35:y:2022:i:c:s2214635022000417
    DOI: 10.1016/j.jbef.2022.100689
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    More about this item

    Keywords

    Gender difference; Perceived money management capability; Personality traits; Subjective well-being; Young adults;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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