Financial Anxiety Research Articles

Gender differences in financial literacy: The role of stereotype threat

Understanding why women display less financial literacy than men is crucial for developing policies to reduce gender inequalities and improve women's financial behavior. In a series of studies, we investigate whether the observed gender gap in financial literacy can be identified in nonnumerical contexts, if it can be related to confidence in financial matters, and if it can be attributed to stereotype threat, which posits that inbuilt prejudices about gender and finance undermine performance among women in tasks involving finance. We utilized data from the Swedish Standardized Scholastic Aptitude Test (n = 40,662) to investigate if there is a greater difference in reading comprehension between men and women when reading about topics related to finance. Furthermore, we conducted large-scale online data collection (n = 1989), including a survey on financial vocabulary and an experiment that manipulated the salience of the financial content across conditions when assessing financial literacy. The results show that the observed gender gap in financial literacy is robust also in a nonnumerical financial contexts and that it can not be attributed to a difference in (displayed) confidence. Finally, mediation analysis showed a significant indirect effect of gender on financial literacy through financial anxiety suggesting that a stereotype threat for women in the financial domain contributes to the observed gender gap.

I Know I Should, But Do I Do It? Connecting Covert and Overt Financial Behaviors

When it comes to money, clients often know what they should do, but they do not always do it. The purpose of this study was twofold: (a) to introduce a new scale to measure financial cognition and (b) to explore the link between thinking (i.e., covert behavior) and financial behavior (i.e., overt behavior). Social Cognitive Theory and Cognitive Behavioral Theory framed the study. Data were collected in two stages from 236 employees in a Midwestern region. Stage one results suggest a newly developed measure, the Financial Cognition Scale, shows acceptable reliability, and construct validity. Stage two found positive associations between the covert behaviors of financial cognition, financial knowledge, and financial self-efficacy and the overt behavior of financial behavior, and a negative association between financial anxiety and financial behavior. Implications for practitioners and researchers are presented.

Financial Anxiety and Resilience among Rural Poor: An Exploration of Social Work Implication

Purpose of the Study: Financial literacy is the main challenge for the rural population of India. It also plays a vital role in the economic outlook. In India, many poor people do not have a bank account, and only a few understand the concept of financial literacy. Due to lack of financial literacy many rural poor experience financial anxieties hence the present study was taken up to know the financial anxiety and resilience behavior among rural poor. Methodology: The present study adopted the descriptive research design 62 respondents were selected for data collection from poor rural households by adopting the purposeful sampling technique in the Kodigenahalli Gram Panchayat jurisdiction. The present study was carried to assess the level of financial anxiety and its relationship with socio-demographical aspects. Main Findings: The present study found that financial anxiety is experienced by the rural poor, and there is a correlation between education, occupation, number of household members with financial anxiety of the respondents. Implication: The researcher proposed the need for Social Work Intervention to address financial anxiety and financial literacy. The novelty of the study: The present study has described the level of financial literacy and financial anxiety that exists among the rural poor in Karnataka (India) and explored the scope of Financial Social Work in addressing financial literacy and financial anxiety. Financial Social Work changes the conversation about money. It provides a different way of thinking about money and it offers a better way of working with clients around the role of money in their lives, problems and issues.

The role of self-esteem, optimism, deliberative thinking and self-control in shaping the financial behavior and financial well-being of young adults.

The sustainable financial behavior and financial well-being have been a key concern among the developing societies; thereby encompassing the various psychological factors which play a role in influencing individual’s positive financial behavior and financial well-being, this study is conducted. Research focusing on the psychological aspect of human financial behavior and well-being is scarce, focusing more on the cognitive side such as financial literacy and numeracy. The aim of this research study is to find the role played by the non-cognitive factors such as self-esteem, self-control, optimism and deliberative thinking, in forming the financial behavior and financial well-being of the young adults. A sample of 429 university students from public and private sector was collected via an online and field survey using purposive sampling technique. The survey contained measures for demographics, self-esteem, optimism, deliberative thinking, self-control, general financial behavior and financial well-being. SPSS and PLS-SEM tools were used for the exploration of the relationships among dependent and independent variables. The results of PLS path analysis demonstrate that among the non-cognitive factors, self-control and deliberative thinking show a significant association with both financial behavior, and financial security. Self-esteem plays no significant role in forming the financial behavior of the young adults when all the variables are taken together but it exhibits a significant association with financial well-being (financial security and financial anxiety). Optimism on the other hand exhibits no significant association with both financial behavior and financial well-being (financial security and financial anxiety). The results of this study complement the previous studies and also put forth new outcomes. This research is unique as it is the first of its kind conducted in a consumption-oriented economy like Pakistan. In addition to the previous studies which have often established the link of self-esteem with general well-being, this study goes further by analyzing the association between self-esteem and financial well-being and by the identification of the role played by non-cognitive factors like self-esteem, optimism, deliberative thinking and self-control together on the financial behavior and financial well-being of the individuals using PLS-SEM approach.

Financial distress and money attitudes.

This study was concerned with the construction and validation of a Financial Distress Index (FDI). A stratified (UK) sample of 2000 adults completed the new measure as well as measures of financial anxiety, general stress and money attitudes. The FDI correlated highly with general stress and financial anxiety, establishing concurrent validity. For the FDI, men scored lower than women, there was an inverse association with age and FDI was lower for the highest income bands. A unit increase in seeing money as security was associated with a reduction in the FDI of 16%, whereas unit increases in money as generosity, freedom, or power and status were associated with an increase in the FDI of, respectively 21%, 24% and 19%. Implications and limitations are discussed.

"Why Am I the Only One Responsible for the Whole Family?": Expressions of Economic Filial Piety and Financial Anxiety Among Female Survivors of Sex Trafficking in Cambodia

Filial piety has evolved and spread in different ways throughout Asia, with the common thread of deep respect and gratitude towards one’s parents remaining a very strong cultural value. In Khmer culture, filial piety includes the expectation that daughters and daughters-in-law provide daily assistance to parents and parents-in-law. Financial anxiety includes the worry and negative mental health outcomes associated with financial stressors. This article presents findings from the Butterfly Longitudinal Research Study on themes on filial piety and financial anxiety, combining survey results from across multiple years as well as a thematic analysis of themes from focus group discussions and interviews with 77 female study participants over five years in Cambodia. Findings explore the survivors’ feelings of responsibility towards their family and the financial and mental health burden of that responsibility; the cycles of debt experienced by survivors and their families; and the overall feelings of worry, guilt, and stress with respect to financial issues. The research concluded that survivors see filial piety as an expression of gratitude but suffer from financial anxiety as well as financial instability and indebtedness. A framework of financial capability is suggested, acknowledging the centrality of family and the need to embed social work and psychosocial support in any economic reintegration effort. Further analysis is recommended on economic shocks, vulnerable work, and experiences around savings.

Loss of financial well-being in the COVID-19 pandemic: Does job stability make a difference?

This article aims to assess the loss of financial well-being in the COVID-19 pandemic. The developed theoretical model identifies the impacts of the perception of financial risk and financial anxiety on financial well-being. It also seeks, through a comparative analysis, to assess whether public servants, due to their status of job stability in Brazil, are less likely to have the effects of the pandemic than private employees. A survey was carried out on 1222 Brazilians with structural equation modeling and multi-group invariance tests. The results indicate that lower financial well-being is influenced by the level of financial anxiety and financial risk. Public servants perceive fewer losses in financial well-being, anxiety and risks than other professions. In the pandemic context, where the risks of unemployment and loss of income are increased, job stability works like an insurance, allowing public servants greater financial security and then minor losses of financial well-being. Evidence indicates that in countries where a large percentage of workers have temporary or informal jobs, the challenge of reducing the financial impacts of the pandemic will be great. Interventions to alleviating anxiety and public policies of income transfer and reduction of unemployment are instruments to reduce the loss of financial well-being.

Job Insecurity, Work-Related Flow, and Financial Anxiety in the Midst of COVID-19 Pandemic and Economic Downturn.

During the COVID-19 pandemic, every domain of industry has experienced a severe economic downturn with concomitant stress throughout the economy. Employees working in government and private sectors are experiencing different psychological problems. The current study was conducted to investigate the role of work-related flow in the relationship of job insecurity with financial anxiety in the employees working in private and government sectors of Saudi Arabia. The sample comprised 1,195 employees, 886 females, and 309 males. The participants' ages ranged from 25 to 60 years. The Financial Anxiety Scale, Work-Related Flow Inventory, and Qualitative Job Insecurity Measures were found valid and reliable. Structural equation modeling was applied to test the associations. As hypothesized, the results indicated that job insecurity was positively related to financial anxiety, work-related flow was negatively associated with financial anxiety, and work-related flow mediated the relationship between job insecurity and financial anxiety. All these associations were significant regardless of gender, age, marital status, sector of employment, income, self-rated health, and COVID-19 infection status. Further research is needed to understand the impact of job insecurity on financial anxiety in-depth through the paths of work-related flow, especially in the midst of COVID-19.

Treatment design, health outcomes, and demographic categories in the literature on minimum wages and health

This literature review analyzes studies from the US, Canada, the UK, and Europe from inception to April 1, 2021 and focuses on treatment designs, health outcomes, demographic categories and data issues. Study designs are classified as treatment-effect-on-the-treated (7 studies), intent-to-treat (37), and what may be called possible-effects-on-anyone (10). Treatment-effects-on-the-treated designs are best for addressing the longstanding question: does income affect health or vice versa? I argue that they are also better for estimating the overall effect of minimum wages on health. Health outcomes are grouped into seven broad categories, such as overall physiological health and behavior, and 33 narrow categories, such as self-rated health and smoking. Demographic categories include gender, race/ethnicity, and age. The preponderance of evidence suggests that studies relying on the treatment-effect-on-the-treated and possible-effects-on-anyone designs find minimum wages improve health; there is no preponderance of evidence for overall health within intent-to-treat designs. With respect to specific health outcomes and demographic categories, there is no preponderance of evidence, except for improving infant and child health. One data issue concerns whether either intent-to-treat or possible-effects-on-everyone studies are reliable given that likely more than 70 % of people in their samples earn substantially above minimum wages thereby favoring the null hypothesis. Treatment-effect-on-the-treated designs are likely the best designs, and findings are largely consistent in showing that minimum wages improve some measures of health, for example, financial anxiety.

Faktor-Faktor yang Memengaruhi Kecemasan Keuangan pada Remaja Kota Surabaya

This study is the first study in Indonesia that examines the factors that influence financial anxiety. Financial anxiety is a negative psychological impact where there is a decrease in various aspects so that, in total, it causes stress levels to jump. This study focuses on adolescents who live in Surabaya, which, based on BPS data, the city of Surabaya has the largest population in East Java and is dominated by adolescents. This study aims to determine the effect of income, debt, financial knowledge, and financial satisfaction on financial anxiety. Data were collected by distributing online questionnaires with random sampling methods to 154 respondents. Then, data were tabulated in excel, analyzed and processed using multiple linear regression in SPSS. The result of this study indicates that none of the independent variables affects financial anxiety. This is presumably due to the lack of public knowledge about financial anxiety, especially among Surabaya adolescents. Few studies examine financial anxiety as the dependent variable, which thought to cause limited public knowledge about this topic. Therefore, this study is expected to increase knowledge, literacy, and public awareness regarding financial anxiety, especially to adolescents in Surabaya.

Excessive use of social networking sites and financial well-being among young adults: the mediating role of online compulsive buying

PurposeThis study aims to examine the mediating role of online compulsive buying in the association between excessive use of social networking sites (SNS) and financial well-being among Chinese young adults.Design/methodology/approachA sample of 539 SNS users and active online shoppers (M age = 20.32 years, SD age = 2.11) completed an online survey questionnaire measure of excessive use of SNS, online compulsive buying and financial well-being. Covariance based-structural equation modelling was used to assess the measurement model and the proposed mediation model.FindingsResults indicated that excessive use of SNS was positively related to online compulsive buying behaviour and financial anxiety. Also, the results showed that online compulsive buying mediated the positive relationship between excessive use of SNS and financial anxiety.Practical implicationsSeveral implications were suggested and discussed to enhance the levels of financial well-being among youths by tackling their problematic behaviour such as excessive SNS usage and online compulsive buying.Originality/valueThe findings of this study contribute to the limited body of knowledge in the area of financial well-being and further improves our understanding of the effect of the excessive use of SNS on financial well-being and the mechanism behind it.

Examining associations between COVID-19 stressors, intimate partner violence, health, and health behaviors

The economic, social, and health impacts of the COVID-19 pandemic are expected to increase the occurrence of intimate partner violence (IPV) victimization. IPV victimization may, in turn, contribute to physical and mental health, substance use, and social distancing behaviors during the COVID-19 pandemic. The primary objective of the current study was to understand the extent to which 1) COVID-19 stressors are associated with IPV victimization and 2) IPV victimization is associated with health and health behaviors. Participants ( N = 1,813) completed an online survey between May 15 and 28, 2020 that assessed COVID-19 stressors (financial anxiety, social disconnection, health anxiety, COVID-19-specific stress), IPV victimization, physical and mental health, substance use, and movement outside of the home. Structural equation modeling indicated that greater COVID-19-related stressors were associated with greater IPV victimization during the pandemic, even after controlling for enduring vulnerabilities associated with IPV victimization. Additionally, greater IPV victimization during the COVID-19 pandemic was associated with higher levels of substance use and movement outside of the home, but not poorer physical and mental health. COVID-19 stressors may have detrimental relationship effects and health implications, underscoring the need for increased IPV intervention and support services during the pandemic. Findings from the current work provide preliminary correlational evidence for a theoretical model centered on IPV victimization, rather than perpetration.

Practical Applications of Psychological Antecedents of Financial Risk Tolerance

In <b>Psychological Antecedents of Financial Risk Tolerance,</b> from the Fall 2020 issue of <b><i>The Journal of Wealth Management</i></b>, authors <b>Heena Thanki, Anushree Karani</b> (both of <b>Shri Jairambhi Patel Institute of Business Management and Computer Applications</b> in <b>Gujarat, India</b>), and <b>Anil Kumar Goyal</b> (of <b>Rukmini Devi Institute of Advanced Studies</b> in <b>New Delhi, India</b>) analyze how psychological and behavioral factors influence financial risk tolerance (FRT) among investors. Past research has focused on how investors’ socioeconomic status, demographic characteristics, and personality types influence their FRT. But the authors say such studies may be of limited value since they do not consider financial satisfaction, financial anxiety, self-esteem, sensation-seeking behavior, and obsession with money. The authors surveyed nearly 400 investors to assess the correlations between these factors and FRT. They found that people who are more satisfied with their financial situation tend to have lower FRT. People who have higher self-esteem or engage in sensation-seeking behavior, and those with Type A personalities, tend to have higher FRT. Obsession with money shows only a weak correlation with FRT. The authors conclude that policymakers and financial advisors should consider such psychological and behavioral factors when deciding what risk level is suitable for investors. <b>TOPIC:</b>Wealth management

Leveraging machine learning to characterize the role of socio-economic determinants on physical health and well-being among veterans

IntroductionWe investigate the contribution of demographic, socio-economic, and geographic characteristics as determinants of physical health and well-being to guide public health policies and preventative behavior interventions (e.g., countering coronavirus). MethodsWe use machine learning to build predictive models of overall well-being and physical health among veterans as a function of these three sets of characteristics. We link Gallup's U.S. Daily Poll between 2014 and 2017 over a range of demographic and socio-economic characteristics with zipcode characteristics from the Census Bureau to build predictive models of overall and physical well-being. ResultsAlthough the predictive models of overall well-being have weak performance, our classification of low levels of physical well-being performed better. Gradient boosting delivered the best results (80.2% precision, 82.4% recall, and 80.4% AUROC) with perceptions of purpose in the workplace and financial anxiety as the most predictive features. Our results suggest that additional measures of socio-economic characteristics are required to better predict physical well-being, particularly among vulnerable groups, like veterans. ConclusionSocio-economic characteristics explain large differences in physical and overall well-being. Effective predictive models that incorporate socio-economic data will provide opportunities to create real-time and personalized feedback to help individuals improve their quality of life.

Faktor yang Memengaruhi Financial Satisfaction pada Masyarakat Kabupaten Pamekasan

The purpose of this research is to determine the influence of income, debt, and financial literacy on financial satisfaction through financial management behaviour as a mediating variable. This causality research using per capita income data from BPS shows that Pamekasan district has the lowest per capita income so that Pamekasan district as an object with a total sample of 193 respondents by offline questionnaire. Using SEM techniques and processed with AMOS tools, the conclusion is that only financial literacy influences financial management behaviour because of their high savings awareness. Income does not influence financial satisfaction because even their income is high enough, but they still have high debt. Debt does not affect financial satisfaction because having debt does not necessarily cause financial anxiety. Some respondents have debt and have financial satisfaction, but some do not. Financial literacy has no influence on financial satisfaction but influences financial management behaviour, and financial management behaviour has not been able to meditate because their saving behaviour is unable to increase their satisfaction

Covid-19 fallout: Interplay between stressors and support on academic functioning of Malaysian university students

Covid-19 has impacted the lives of everyone around the world, including university students. The pandemic has wreaked havoc on all economies, resulting in a huge loss of employment. As a result, university students are anxious about their job prospects upon graduation. The purpose of this study was to identify the effects of two stressors – employment anxiety and financial anxiety and two supports - university support and lecturer support on dropout intention and academic performance on university students with well-being and purpose in life being the mediators. This quantitative was carried out in Malaysia using 436 final-year undergraduate students. The full mediation model indicated that the university and lecturer support mitigates the two stressors' effects through well-being and purpose in life. Students who reported better support systems reported lower academic concerns and were less likely to drop out than those who reported less support from their university and lectures. The significance of this study and its implications are discussed, along with the findings.

Financial Anxiety is Associated With Cancer Screening Adherence in Women at High Risk of Breast Cancer.

Previous studies have examined the impact of material financial hardship on cancer screening but without focusing on the psychological aspects of financial hardship. This study examined the effects of different types of financial anxiety on adherence to breast cancer screening in women at high risk of breast cancer. Adherence to cervical cancer screening was also examined to determine whether associations between financial anxiety and screening adherence were unique to breast cancer screening or more general. Women (n = 324) aged 30-50 and at high risk for inherited breast cancer completed a survey on general financial anxiety, worry about affording healthcare, financial stigma due to cancer risk, and adherence to cancer screening. Multivariate analyses controlled for poverty, age, and race. More financial anxiety was associated with lower odds of mammogram adherence (odds ratio [OR] = 0.97, confidence interval [CI] = 0.94, 0.99), Pap smear adherence (OR = 0.98, CI = 0.96, 0.996), and clinical breast examination adherence (OR = 0.98, CI = 0.96, 0.995). More worry about affording healthcare was associated with lower odds of clinical breast examination adherence (OR = 0.95, CI = 0.91, 0.9992) but not mammogram or Pap smear adherence (p > .05). Financial stigma due to cancer risk was associated with lower odds of Pap smear adherence (OR = 0.87, CI = 0.77, 0.97) but no other cancer screenings (p > .07). Financial anxiety may impede cancer screening, even for high-risk women aware of their risk status. Clinical interventions focused on social determinants of health may also need to address financial anxiety for women at high risk of breast cancer.

Investigating the Effectiveness of the Financial Narrative Therapy on the Financial Anxiety and Financial Wellbeing among the Female Nurses in the Educational Hospitals

Background and Aim: Researchers in the field of financial health have recently paid attention to thefinancial wellbeing of individuals and the factors affecting which. Accordingly, various interventions andtherapies have been developed so far to maintain and improve the financial health of individuals. The aim ofthis study was to investigate the effectiveness of financial narrative therapy on reducing the financial anxietyand increasing the financial self-efficacy of female nurses.Methods: This semi-experimental research is pre-test and post-test with the control group. The statisticalpopulation of the study consisted of all female nurses of educational hospitals in year 2019. A total of30 people were randomly selected and assigned in both experimental and control groups (each with 15members). In this research, Financial Anxiety Scale (FAS) and Financial Well-Fare Questionnaire (FWQ)were used to collect data. The financial narrative therapy was conducted in eight 90-minute sessions in theexperimental group. Data were analyzed using SPSS-v.21 software and Statistical analysis of covarianceanalysis (ANCOVA).Results: The findings showed a significant difference between the mean of the experimental and controlgroup in two variables of financial anxiety and financial wellbeing (P &lt;0.01). Based on this, it can beconcluded that financial narrative therapy has been effective in reducing the financial anxiety and increasingthe financial self-efficacy of the female nurses.Conclusion: Given the prominence of role of financial issues as a part of life in the today’s constantlychanging world, and the emergence of multiple sources of stress, financial narrative therapy can be used asan intervention to improve the financial health of individuals.

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

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.

Hospitality students at the online classes during COVID-19 – How personality affects experience?

The recent COVID-19 pandemic has forced all teaching and learning activities to shift to online platforms. Hospitality students are not exempted from this transition even though they are used to offline learning environment and often take a blended learning of theoretical and practical components. This sudden change has caused disruptions in their learning process and created all kinds of anxieties. Thus, this study aimed to explore how the personality traits of hospitality students are associated with their level of anxieties and how their learning experience is affected. A survey was conducted in Hong Kong shortly after the affected semester ended. Results showed that students with high levels of agreeableness and openness to experience perceive a high degree of learning, technical, and financial anxiety. By contrast, students with high levels of conscientiousness, extraversion, and neuroticism partially sense a low degree of these anxieties. Results also revealed that a low degree of learning and financial anxiety can enhance students’ perceived online learning and consequently improve student satisfaction. Theoretical development and managerial implications are further discussed.