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Financial Well-Being and Its Relationship with Subjective and Psychological Well-Being Among Emerging Adults: Testing the Moderating Effect of Individual Differences

Author

Listed:
  • Paola Iannello

    (Università Cattolica del Sacro Cuore)

  • Angela Sorgente

    (Università Cattolica del Sacro Cuore)

  • Margherita Lanz

    (Università Cattolica del Sacro Cuore)

  • Alessandro Antonietti

    (Università Cattolica del Sacro Cuore)

Abstract

Most studies investigating the emerging adults’ (objective and subjective) financial well-being specifically focused on the main predictors of this construct, whereas only few studies tested the financial well-being as antecedent of possible outcomes during emerging adulthood. The current paper aims (1) to test the impact that the emerging adults’ subjective financial well-being (i.e., subjective perception of the own financial condition) has on their subjective and psychological well-being and (2) to verify if this relation is moderated by emerging adults’ individual differences respect to the way in which they can tolerate uncertainty and ambiguity. On a sample of 452 Italian and Portuguese participants (20–27 years old) a cluster analysis was performed in order to identify groups of emerging adults with similar patterns of uncertainty and ambiguity tolerance. We identified four groups: anxiety about ambiguity and uncertainty, comfort with ambiguity and uncertainty, black-and-white thinking, flexible thinking. Then, a multi-group path analysis was carried out in order to test if the relationships between the subjective financial well-being and the subjective and psychological well-being were invariant across groups. We found that the subjective financial well-being has a positive and invariant impact on the subjective well-being, whereas it has a positive but non-invariant impact on the psychological well-being. Implications of the results are discussed.

Suggested Citation

  • Paola Iannello & Angela Sorgente & Margherita Lanz & Alessandro Antonietti, 2021. "Financial Well-Being and Its Relationship with Subjective and Psychological Well-Being Among Emerging Adults: Testing the Moderating Effect of Individual Differences," Journal of Happiness Studies, Springer, vol. 22(3), pages 1385-1411, March.
    • Handle: RePEc:spr:jhappi:v:22:y:2021:i:3:d:10.1007_s10902-020-00277-x
    DOI: 10.1007/s10902-020-00277-x
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    2. 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).
    3. 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.
    4. Yu-Chuan Chen & Yung-Ho Chiu & Tzu-Han Chang & Tai-Yu Lin, 2023. "Sustainable Development, Government Efficiency, and People’s Happiness," Journal of Happiness Studies, Springer, vol. 24(4), pages 1549-1578, April.
    5. 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.

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