Factor Analyses of a Money Beliefs and Behaviors Assessment Tool

Abstract

This study advances previous research by Delgadillo and Bushman (2015), offering a detailed examination of Money Habitudes, a tool for understanding financial behaviors and beliefs. Employing both exploratory and confirmatory factor analyses (EFA and CFA), the research assesses the internal structure of Money Habitudes which is widely utilized by financial professionals to facilitate discussions. A dataset ofn= 35,108 online Money Habitudes assessments collected between 2016 and 2023 by Money Habitudes, LLC, was used for the project. The findings reveal that the tool possesses an acceptable internal structure, validating its continued use in professional settings. The study also identifies specific aspects of the tool that could benefit from refinement, highlighting potential improvements in its qualitative and quantitative applications. These enhancements aim to augment the tool’s efficacy for both helping professionals and consumers. The study’s outcomes not only corroborate the tool’s current applicability but also lay the groundwork for its future development, ensuring its relevance and utility in evolving professional practices.