Pathways to Individual Financial Well-Being: Conceptual Framework and Future Research Agenda

Abstract

This conceptual article uses the theory of planned behaviour and the social comparison theory with an aim to propose an integrated conceptual model of individual financial well-being. The study helps to understand the process by which individuals acquire the skills required for responsible management of finance and achieve financial well-being. The present article synthesises findings from the existing literature and proposes an integrated conceptual model that incorporates financial knowledge, financial behaviours, financial attitude, financial social comparison and financial self-efficacy into a single financial well-being model. Besides this, one’s level of materialism, orientation towards future, level of conscientiousness and cultural values are identified as antecedents of financial attitude. Moreover, the gender perspective is also incorporated in the model, which provides valuable insights on the existence of wide gap in wealth accumulation as indicated by substantial research work. The study develops several propositions that may advance empirical research in financial well-being domain. The study also discusses practical implications for financial service professionals who can positively improve the ability of individuals in financial matters by emphasising the importance of psycho-social variables.