Financial Confidence in Dealing with Unexpected Expenditure and Consumer Financial Satisfaction: The Moderating Role of Subjective Financial Knowledge

Abstract

Utilizing data from the U.S. National Financial Capability Study in 2018, the purpose of this study is to investigate the associations between financial confidence in dealing with unexpected expenditure (FCDUE) and consumer financial satisfaction, which is informative for policymakers and financial institutions to carry out more effective measures to improve consumer financial satisfaction. Besides, this study further explores the moderating role of subjective financial knowledge. To produce more accurate estimates, this study employs the approach of ordered probit regression. The results indicate positive associations between FCDUE and consumer financial satisfaction. Besides, the results suggest that the moderating role of subjective financial knowledge enhances the positive effects of FCDUE on consumer financial satisfaction. The empirical findings imply that maintaining appropriate financial confidence in emergency savings and adequate financial literacy is in favor of enhancing consumer financial satisfaction.