IDEAS home Printed from https://ideas.repec.org/a/spr/jhappi/v21y2020i5d10.1007_s10902-019-00145-3.html
   My bibliography  Save this article

Conceptualizing Financial Wellbeing: An Ecological Life-Course Approach

Author

Listed:
  • Fanny Salignac

    (Kedge Business School)

  • Myra Hamilton

    (University of New South Wales)

  • Jack Noone

    (University of New South Wales)

  • Axelle Marjolin

    (University of New South Wales)

  • Kristy Muir

    (University of New South Wales)

Abstract

Around the world, the financial landscape is becoming increasingly complex. In response to this, an array of initiatives seeks to address financial participation, education, and inclusion for the broad as well as the vulnerable population. There is an increased expectation that these programs will improve the financial wellbeing of individuals and households. But financial wellbeing is inadequately conceptualized and inconsistently defined, making it difficult to understand and improve financial outcomes. Existing conceptualizations, do not adequately account for the dynamic interplay between a person’s environment and their financial wellbeing as well as how aspects of financial wellbeing can interact according to age and life stages. This paper aims to address this gap by redefining and re-conceptualizing financial wellbeing and understanding its components and the relationships between them. To do so, nine focus groups with 54 people living in Australia of different ages, genders, and socio-economic statuses; and 18 one-on-one interviews with people experiencing challenges to their financial wellbeing, are conducted. Using an ecological life-course approach, this paper proposes a definition of financial wellbeing and puts forward a conceptual model allowing us to better understand how financial wellbeing may change over time, and how it is achieved, maintained, or challenged. Policy makers, regulators and organizations may use this model to consider where they might focus their efforts.

Suggested Citation

  • Fanny Salignac & Myra Hamilton & Jack Noone & Axelle Marjolin & Kristy Muir, 2020. "Conceptualizing Financial Wellbeing: An Ecological Life-Course Approach," Journal of Happiness Studies, Springer, vol. 21(5), pages 1581-1602, June.
    • Handle: RePEc:spr:jhappi:v:21:y:2020:i:5:d:10.1007_s10902-019-00145-3
    DOI: 10.1007/s10902-019-00145-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10902-019-00145-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10902-019-00145-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert Cummins, 2010. "Subjective Wellbeing, Homeostatically Protected Mood and Depression: A Synthesis," Journal of Happiness Studies, Springer, vol. 11(1), pages 1-17, March.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    3. Paul Gerrans & Craig Speelman & Guillermo Campitelli, 2014. "The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach," Journal of Family and Economic Issues, Springer, vol. 35(2), pages 145-160, June.
    4. Plagnol, Anke C., 2011. "Financial satisfaction over the life course: The influence of assets and liabilities," Journal of Economic Psychology, Elsevier, vol. 32(1), pages 45-64, February.
    5. Richard G Netemeyer & Dee Warmath & Daniel Fernandes & John G LynchJr. & Eileen FischerEditor & Olivier ToubiaAssociate Editor, 2018. "How Am I Doing? Perceived Financial Well-Being, Its Potential Antecedents, and Its Relation to Overall Well-Being," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 45(1), pages 68-89.
    6. Chu Kim-Prieto & Ed Diener & Maya Tamir & Christie Scollon & Marissa Diener, 2005. "Integrating The Diverse Definitions of Happiness: A Time-Sequential Framework of Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 6(3), pages 261-300, September.
    7. Paul Frijters & David W. Johnston & Michael A. Shields, 2011. "Life Satisfaction Dynamics with Quarterly Life Event Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 190-211, March.
    8. Thomas Hansen & Britt Slagsvold & Torbjørn Moum, 2008. "Financial Satisfaction in Old Age: A Satisfaction Paradox or a Result of Accumulated Wealth?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 89(2), pages 323-347, November.
    9. Brown, Sarah & Durand, Robert B. & Harris, Mark N. & Weterings, Tim, 2014. "Modelling financial satisfaction across life stages: A latent class approach," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 117-127.
    10. Erik Carlquist & Pål Ulleberg & Antonella Delle Fave & Hilde E. Nafstad & Rolv M. Blakar, 2017. "Everyday Understandings of Happiness, Good Life, and Satisfaction: Three Different Facets of Well-being," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(2), pages 481-505, June.
    11. Jungmeen E. Kim & Phyllis Moen, 2002. "Retirement Transitions, Gender, and Psychological Well-Being," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 57(3), pages 212-222.
    12. Ivo Vlaev & Antony Elliott, 2014. "Financial Well-Being Components," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(3), pages 1103-1123, September.
    13. Noreen Byrne & Olive McCarthy & Michael Ward, 2007. "Money-Lending and Financial Exclusion," Public Money & Management, Taylor & Francis Journals, vol. 27(1), pages 45-52, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gagandeep Kaur & Manjit Singh, 2024. "Pathways to Individual Financial Well-Being: Conceptual Framework and Future Research Agenda," FIIB Business Review, , vol. 13(1), pages 27-41, January.
    2. Riitsalu, Leonore & Uusberg, Andero, 2021. "To double, quadruple, or keep? Semi-automated service increases micro-investments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    3. Malik, Faiza & Ishaq, Muhammad Ishtiaq, 2023. "Impact of minimalist practices on consumer happiness and financial well-being," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    4. Mahendru, Mandeep & Sharma, Gagan Deep & Pereira, Vijay & Gupta, Mansi & Mundi, Hardeep Singh, 2022. "Is it all about money honey? Analyzing and mapping financial well-being research and identifying future research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 417-436.
    5. Shereen Hussein & Ann-Marie Towers & Sinead Palmer & Nadia Brookes & Barbora Silarova & Petra Mäkelä, 2022. "Developing a Scale of Care Work-Related Quality of Life (CWRQoL) for Long-Term Care Workers in England," IJERPH, MDPI, vol. 19(2), pages 1-20, January.
    6. 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.
    7. Ali, Muhammad Arsalan & Rehman, Khalil ur & Maqbool, Adnan & Hussain, Shahid, 2021. "The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(2), pages 325-336, June.
    8. Angela Sorgente & Michela Zambelli & Margherita Lanz, 2023. "Are Financial Well-Being and Financial Stress the Same Construct? Insights from an Intensive Longitudinal Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 553-573, September.
    9. Osvaldo García-Mata & Mariana Zerón-Félix, 2022. "A review of the theoretical foundations of financial well-being," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 145-176, June.
    10. Nisha Prakash & Aparna Hawaldar, 2024. "Investigating the Determinants of Financial Well-Being: A SEM Approach," Business Perspectives and Research, , vol. 12(1), pages 11-25, January.
    11. Frank M. Magwegwe & Maurice M. MacDonald & HanNa Lim & Stuart J. Heckman, 2023. "Determinants of financial worry," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 171-221, January.
    12. Carton, F.L. & Xiong, H. & McCarthy, J.B., 2022. "Drivers of financial well-being in socio-economic deprived populations," Journal of Behavioral and Experimental Finance, Elsevier, vol. 34(C).
    13. Bashir Ifra & Qureshi Ishtiaq, 2023. "Financial Well-Being and Financial Stress: Examining the Moderating Effect of Gender," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 11(1), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahendru, Mandeep & Sharma, Gagan Deep & Pereira, Vijay & Gupta, Mansi & Mundi, Hardeep Singh, 2022. "Is it all about money honey? Analyzing and mapping financial well-being research and identifying future research agenda," Journal of Business Research, Elsevier, vol. 150(C), pages 417-436.
    2. Gagandeep Kaur & Manjit Singh & Sanjay Gupta, 2023. "Analysis of key factors influencing individual financial well-being using ISM and MICMAC approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1533-1559, April.
    3. Derek T. Tharp & Martin Seay & Cherie Stueve & Somer Anderson, 2020. "Financial Satisfaction and Homeownership," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 255-280, June.
    4. Carole Comerton‐Forde & John de New & Nicolás Salamanca & David C. Ribar & Andrea Nicastro & James Ross, 2022. "Measuring Financial Wellbeing with Self‐Reported and Bank Record Data," The Economic Record, The Economic Society of Australia, vol. 98(321), pages 133-151, June.
    5. Ifra Bashir & Ishtiaq Hussain Qureshi, 2023. "A Systematic Literature Review on Personal Financial Well-Being: The Link to Key Sustainable Development Goals 2030," FIIB Business Review, , vol. 12(1), pages 31-48, March.
    6. Stephen Roll & Olga Kondratjeva & Sam Bufe & Michal Grinstein-Weiss & Stephanie Skees, 2022. "Assessing the Short-Term Stability of Financial Well-Being in Low- and Moderate-Income Households," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 100-127, March.
    7. Hassan F. Gholipour & Reza Tajaddini & Farhad Taghizadeh-hesary, 2022. "Individuals’ Financial Satisfaction and National Priority: A Global Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(1), pages 159-177, February.
    8. Martina Manfre' & Viola Angelini, 2018. "Does The Financial Situation affect Cheating Behavior? An Investigation through Financial Literacy," Working Papers 06/2018, University of Verona, Department of Economics.
    9. Lu Fan & Robin Henager, 2022. "A Structural Determinants Framework for Financial Well-Being," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 415-428, June.
    10. Osvaldo García-Mata & Mariana Zerón-Félix, 2022. "A review of the theoretical foundations of financial well-being," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 145-176, June.
    11. Dung Phuong Hoang & Thi Hong Hai Nguyen & Nham Linh Vuong & Dat Luong, 2023. "Linking psychological needs, perceived financial well-being and loyalty: the role of commercial banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 466-487, September.
    12. Sam Bufe & Stephen Roll & Olga Kondratjeva & Stephanie Skees & Michal Grinstein-Weiss, 2022. "Financial Shocks and Financial Well-Being: What Builds Resiliency in Lower-Income Households?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 379-407, May.
    13. Amany A. El Anshasy & Mrittika Shamsuddin & Marina-Selini Katsaiti, 2023. "Financial Wellbeing and International Migration Intentions: Evidence from Global Surveys," Journal of Happiness Studies, Springer, vol. 24(7), pages 2261-2289, October.
    14. Sandra Castro-González & Sara Fernández-López & Lucía Rey-Ares & David Rodeiro-Pazos, 2020. "The Influence of Attitude to Money on Individuals’ Financial Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(3), pages 747-764, April.
    15. Kamer Karakurum-Ozdemir & Melike Kokkizil & Gokce Uysal, 2019. "Financial Literacy in Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 325-353, May.
    16. Noviarini, Jelita & Coleman, Andrew & Roberts, Helen & Whiting, Rosalind H., 2023. "Financial literacy and retirees' resource allocation decisions in New Zealand," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    17. Malik, Faiza & Ishaq, Muhammad Ishtiaq, 2023. "Impact of minimalist practices on consumer happiness and financial well-being," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    18. Edsel L. Beja, 2018. "The U-shaped relationship between happiness and age: evidence using world values survey data," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1817-1829, July.
    19. Etilé, Fabrice & Frijters, Paul & Johnston, David W. & Shields, Michael A., 2021. "Measuring resilience to major life events," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 598-619.
    20. Botha, Ferdi & Ribar, David C., 2023. "For worse? Financial hardships and intra-household resource allocation among Australian couples," Economic Modelling, Elsevier, vol. 119(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jhappi:v:21:y:2020:i:5:d:10.1007_s10902-019-00145-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.