Relating mindfulness to financial well-being through materialism: evidence from India

Abstract

PurposeThe purpose of this study is to examine the relationship between dispositional mindfulness and financial well-being (FWB) and the mediating role of materialism on this relationship.Design/methodology/approachA conceptual framework is provided to support the research hypotheses. A survey with 311 working professionals from India allowed the hypothesized relationship to be tested through regression-based models.FindingsThe findings reveal that the three dimensions of FWB – financial anxiety, current money management stress and perceived financial security – are predicted by mindfulness and materialism even after controlling for several demographic variables. Materialism mediates the relationship between mindfulness and FWB.Research limitations/implicationsThe findings are subject to the usual cautions associated with self-reported cross-sectional data. Future research may incorporate mindfulness interventions to establish causal relationships.Practical implicationsThe study provides theoretical guidance to the policymakers and the financial institutions, including banks, which may focus on malleable factors beyond merely income to enhance FWB. Mindfulness is not only a trait but also could be cultivated by various physical and online-based mindfulness practices. Banks may integrate tools promoting mindfulness within their interactive web framework in order to stimulate customers' control over their daily spending through enhancing mindful awareness of present financial actions and their impact on the financial future. Thus, organizations may institutionalize such programs within their framework to help their employees cultivate greater FWB. Mindfulness promotes less anxiety related to financial decisions, which may develop customers' value as well as business opportunities for banks.Originality/valueUnlike other FWB dispositional antecedents, which become relatively stable at the formative stage, mindfulness levels can be enhanced in different age-groups. To our knowledge, this is the first study to empirically establish that mindfulness exerts its beneficial effects on FWB directly, and, through reducing materialistic motives.