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Psychometric evaluation of the Financial Threat Scale (FTS) in the context of the great recession

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  • Marjanovic, Zdravko
  • Greenglass, Esther R.
  • Fiksenbaum, Lisa
  • Bell, Chris M.

Abstract

In the current economic downturn, people are fearful, uncertain, and preoccupied about how the recession affects them, their loved ones, and their collective futures. In short, they feel threatened by the stability and security of their personal finances. This study examined the psychometric properties of the Financial Threat Scale (FTS), a 5-item scale which was designed to measure these feelings. Data were collected in Canada at the height of the recession as part of a larger international investigation on the economic downturn and psychological health. Results showed the FTS is unidimensional and highly reliable. The FTS’ validity was supported by showing its relations with (1) psychological health outcomes, financial situation measures, and individual differences measures, all in the expected directions. The FTS also showed incremental validity by accounting for variance in psychological health outcomes above-and-beyond that of either the financial situation measures or individual differences measures. The theoretical and practical implications of the FTS are discussed.

Suggested Citation

  • Marjanovic, Zdravko & Greenglass, Esther R. & Fiksenbaum, Lisa & Bell, Chris M., 2013. "Psychometric evaluation of the Financial Threat Scale (FTS) in the context of the great recession," Journal of Economic Psychology, Elsevier, vol. 36(C), pages 1-10.
    • Handle: RePEc:eee:joepsy:v:36:y:2013:i:c:p:1-10
    DOI: 10.1016/j.joep.2013.02.005
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    Cited by:

    1. Jorge Torres-Marín & Ginés Navarro-Carrillo & Michael Eid & Hugo Carretero-Dios, 2022. "Humor Styles, Perceived Threat, Funniness of COVID-19 Memes, and Affective Mood in the Early Stages of COVID-19 Lockdown," Journal of Happiness Studies, Springer, vol. 23(6), pages 2541-2561, August.
    2. Simonse, Olaf & Van Dijk, Wilco W. & Van Dillen, Lotte F. & Van Dijk, Eric, 2024. "Economic predictors of the subjective experience of financial stress," Journal of Behavioral and Experimental Finance, Elsevier, vol. 42(C).
    3. Hussain Mehdi & Huma Ali & Shaukat Malik & Zeeshan Rasool, 2021. "Impact of Financial Threat on the Change of Investor Behavior: The Moderating Effect of Social Support During Covid-19 in Pakistan," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 40(72), pages 47-70, July.
    4. Carlota de Miquel & Joan Domènech-Abella & Mireia Felez-Nobrega & Paula Cristóbal-Narváez & Philippe Mortier & Gemma Vilagut & Jordi Alonso & Beatriz Olaya & Josep Maria Haro, 2022. "The Mental Health of Employees with Job Loss and Income Loss during the COVID-19 Pandemic: The Mediating Role of Perceived Financial Stress," IJERPH, MDPI, vol. 19(6), pages 1-14, March.
    5. Jiří Pospíšil & Nataša Matulayová & Pavla Macháčková & Pavlína Jurníčková & Ivana Olecká & Helena Pospíšilová, 2021. "Value-Based Financial Risk Prediction Model," Risks, MDPI, vol. 9(11), pages 1-24, November.
    6. Greenglass, Esther & Antonides, Gerrit & Christandl, Fabian & Foster, Gigi & Katter, Joana K.Q. & Kaufman, Bruce E. & Lea, Stephen E.G., 2014. "The financial crisis and its effects: Perspectives from economics and psychology," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 10-12.
    7. Marjanovic, Zdravko & Fiksenbaum, Lisa & Greenglass, Esther, 2018. "Financial threat correlates with acute economic hardship and behavioral intentions that can improve one's personal finances and health," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 151-157.
    8. van Dijk, Wilco W. & van der Werf, Minou M.B. & van Dillen, Lotte F., 2022. "The Psychological Inventory of Financial Scarcity (PIFS): A psychometric evaluation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 101(C).
    9. Lewis, Tené T. & Parker, Rachel & Erving, Christy L. & Udaipuria, Shivika & Murden, Raphiel J. & Fields, Nicole D. & Booker, Bianca & Moore, Reneé H. & Vaccarino, Viola, 2024. "Financial responsibility, financial context, and ambulatory blood pressure in early middle-aged African-American women," Social Science & Medicine, Elsevier, vol. 345(C).
    10. Rui Yao & Weipeng Wu, 2022. "Mental Disorders Associated with COVID-19 Related Unemployment," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(2), pages 949-970, April.
    11. Amanda Wuth & Magdalena Cismaru, 2021. "A Conceptual and Operational Review of the Negative Financial Health Terminology and Constructs," International Business Research, Canadian Center of Science and Education, vol. 14(4), pages 1-1, April.
    12. Dimitris Zavras, 2021. "Feeling Uncertainty during the Lockdown That Commenced in March 2020 in Greece," IJERPH, MDPI, vol. 18(10), pages 1-10, May.
    13. de Bruijn, Ernst-Jan & Antonides, Gerrit, 2020. "Determinants of financial worry and rumination," Journal of Economic Psychology, Elsevier, vol. 76(C).
    14. Dimitris Zavras, 2022. "Studying the Experience of the Confinement Measures Implemented during the COVID-19 Pandemic in Greece," World, MDPI, vol. 3(3), pages 1-14, August.
    15. Yang Liu & Han Zhang & Fukang Zhang, 2024. "The power of CEO growing up in poverty: Enabling better corporate environmental, social, and governance (ESG) performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1610-1633, May.
    16. Tajana Guberina & Ai Min Wang, 2021. "Entrepreneurial Leadership Impact on Job security and Psychological Well-being during the COVID-19 Pandemic: A conceptual review," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(6), pages 7-18, February.
    17. Dipti Saraf & Narayan Baser, 2024. "Influence of fear on purchase of health insurance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(2), pages 354-363, June.
    18. Carlos-María Alcover & Sergio Salgado & Gabriela Nazar & Raúl Ramírez-Vielma & Carolina González-Suhr, 2022. "Job Insecurity, Financial Threat, and Mental Health in the COVID-19 Context: The Moderating Role of the Support Network," SAGE Open, , vol. 12(3), pages 21582440221, September.
    19. Magdalena Adamus & Matúš Grežo, 2021. "Individual Differences in Behavioural Responses to the Financial Threat Posed by the COVID-19 Pandemic," MUNI ECON Working Papers 2021-09, Masaryk University, revised Feb 2023.
    20. Marjanovic, Zdravko & Greenglass, Esther R. & Fiksenbaum, Lisa & De Witte, Hans & Garcia-Santos, Francisco & Buchwald, Petra & Peiró, José María & Mañas, Miguel A., 2015. "Evaluation of the Financial Threat Scale (FTS) in four European, non-student samples," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 55(C), pages 72-80.
    21. Sarah D. Asebedo & Taufiq Hasan Quadria & Blake T. Gray & Yi Liu, 2022. "The Psychology of COVID-19 Economic Impact Payment Use," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 239-260, June.

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    More about this item

    Keywords

    Economic crisis; Perceived threat; Uncertainty; Individual differences; Psychological health;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General

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