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

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  • Paul Gerrans

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  • Craig Speelman
  • Guillermo Campitelli
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    Abstract

    We examined the construct of financial wellness and its relationship to personal wellbeing, with a focus on the role of financial literacy. Gender comparisons are made using a structural equation modeling analysis including personal wellbeing, financial satisfaction, financial status, financial behavior, financial attitude, and financial knowledge. Males ranked higher in financial satisfaction and financial knowledge whereas females ranked higher in personal wellbeing. Joo’s ( 2008 ) concept of financial wellness as multidimensional is supported though the result is improved when a causal model of sub-components is estimated. The relationship of all variables to personal wellbeing is mediated by financial satisfaction, with gender differences: In females the main source of financial satisfaction is financial status whereas in males it is financial knowledge. Copyright Springer Science+Business Media New York 2014

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Family and Economic Issues.

    Volume (Year): 35 (2014)
    Issue (Month): 2 (June)
    Pages: 145-160

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    Handle: RePEc:kap:jfamec:v:35:y:2014:i:2:p:145-160

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    Web page: http://www.springerlink.com/link.asp?id=104904

    Related research

    Keywords: Personal financial wellness; Personal wellbeing; Financial literacy; Financial attitude; Financial behavior;

    References

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