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From Security to Freedom— The Meaning of Financial Well-being Changes with Age

Author

Listed:
  • Leonore Riitsalu

    (University of Tartu, Johan Skytte institute of political studies)

  • Rene Sulg

    (University of Tartu, Johan Skytte institute of political studies)

  • Henri Lindal

    (Estonian Business School)

  • Marvi Remmik

    (University of Tartu, Johan Skytte institute of political studies)

  • Kristiina Vain

    (University of Tartu, Johan Skytte institute of political studies)

Abstract

Financial well-being is becoming more prominent in policy, research, and the financial sector. However, there is a lack of understanding of its meaning, and the vast majority of financial well-being research employs quantitative methods whereas recent literature reviews advocate for qualitative studies into the meaning of financial well-being and its associations with age. We contribute to that by conducting exploratory qualitative research into the phenomenon of perceived financial well-being and its components. It is based on three studies each of which used in-depth semi-structured interviews (N = 47). The first key finding is that youth perceive financial well-being to be comprised of three components: keeping the current lifestyle and making ends meet; achieving desired lifestyle; and achieving financial freedom. In contrast, older groups distinguish only two: keeping and achieving the lifestyle in the present and in the future. The second finding is that the definition of financial freedom differs across age groups. Young people aspire to become financially independent, while middle-aged individuals prioritize supporting their children, and older people are afraid of becoming a financial burden. Third, regardless of age, many do not plan, save or invest for securing their financial well-being. We conclude by proposing implications for increasing financial well-being in different age groups, and suggesting paths for further investigation.

Suggested Citation

  • Leonore Riitsalu & Rene Sulg & Henri Lindal & Marvi Remmik & Kristiina Vain, 2024. "From Security to Freedom— The Meaning of Financial Well-being Changes with Age," Journal of Family and Economic Issues, Springer, vol. 45(1), pages 56-69, March.
    • Handle: RePEc:kap:jfamec:v:45:y:2024:i:1:d:10.1007_s10834-023-09886-z
    DOI: 10.1007/s10834-023-09886-z
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    References listed on IDEAS

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