1. How Executive Functioning and Financial Self-efficacy Predict Subjective Financial Well-Being via Positive Financial Behaviors
- Author
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Dare, S, van Dijk, W, van Dijk, E, van Dillen, L, Gallucci, M, Simonse, O, Dare S. E., van Dijk W. W., van Dijk E., van Dillen L. F., Gallucci M., Simonse O., Dare, S, van Dijk, W, van Dijk, E, van Dillen, L, Gallucci, M, Simonse, O, Dare S. E., van Dijk W. W., van Dijk E., van Dillen L. F., Gallucci M., and Simonse O.
- Abstract
Financial well-being is a desirable state as it benefits individuals, families, organizations, and society, and these benefits reach beyond the financial domain. We assessed financial well-being as two components (current financial stress and expected future financial security) and used data from a representative sample of adults in the United Kingdom (n = 411). Our study provides novel insights based on preregistered hypotheses, method, and analysis plan on the Open Science Framework. We hypothesized that both executive functioning and financial self-efficacy are positively related to financial well-being via positive financial behaviors. We also hypothesized that executive functioning moderated the indirect relation of financial self-efficacy with financial well-being, and that financial self-efficacy moderated the indirect relation of executive functioning with financial well-being. As predicted, results showed that financial self-efficacy was strongly positively related to financial well-being via positive financial behaviors. Our results did not show that executive functioning was related to financial well-being via positive financial behaviors, nor that executive functioning or financial self-efficacy operated as moderators. This study provides possible strategies for financial practitioners and service providers, among others, to help individuals and families better their financial behaviors and their financial well-being.
- Published
- 2022