Personal Financial Well-being Research Articles

СТРАХОВА ГРАМОТНІСТЬ НАСЕЛЕННЯ ЯК КЛЮЧОВА УМОВА РОЗВИТКУ СТРАХОВОГО РИНКУ

In the conditions where economic entities are increasingly taking responsibility for personal security and financial well-being, special attention should be paid to improving financial literacy in insurance. The importance of improving insur-ance literacy of the population is also due to the need to raise the level of culture of all participants in insurance relations, which will ultimately increase the efficiency of the insurance institution and economy of the country. Therefore, increasinginsurance literacy of the population is one of the key objectives at the present stage of the insurance market development and requires a comprehensive study. Within the article it is stated that the purpose of the study is to reveal the essence and importance of insurance literacy to ensure the population and justify the need to increase it in modern conditions. In the article, the essence and the content of financial literacy as an important condition for economic development is revealed. It is established that insurance literacy is an important component of financial literacy, which is based on a set of knowledge about insurance, skills and abilities that shape the attitude and appropriate pattern of the people’s behavior in the insurance market. Within the article, the author’s approach to the classification of insurance literacy based on which you can develop a model of behavior of insurance entities in choosing the insurer and insurance services, in the process of servicing the insur-ance contract and in the event of an insured event is revealed. The main features of the classification are the following ones: subjects of insurance, stages of the implementation of insurance services, presence of the invest component, objects of insur-ance, form of insurance, and type of danger. It is found within the study that improving insurance literacy has a positive impact on policyholders, insurers, and the level of economic development in general. Based on the definition of benefits for all subjects of insurance relations, the need to increase financial literacy in modern conditions is justified. In the article, the factors that influence the increase in interest in improving financial literacy, or conversely, constrainit are considered.

Analysing personal financial wellness amongst employees of a South African tertiary institution

The financial health of employees is increasingly becoming important in many organisations. Personal financial wellness not only contributes to the overall well-being of employees but also affects their job productivity. Thus, employers need the necessary knowledge to evaluate and address employees’ personal financial wellness levels effectively. The main objective of this study was to analyse the level of personal financial wellness amongst employees at a South African tertiary institution and gain insight which employers can use in addressing the needs of their staff with regard to personal finances. The study followed a cross-sectional design. Primary data were collected using a self-administered questionnaire from 60 attendees of a personal finance workshop, using the validated Personal Finance Well-being Scale. Practically visible to practically significant correlations were found between the number of years employed, income tax percentage paid on income earned, age, number of years being a homeowner and personal financial well-being, respectively. There were also practically non-significant correlations between general health levels, highest qualification, the number of children living in a household, number of children or other financially responsible adults and personal financial well-being. Employees’ sources of advice also seemed to influence their financial well-being. Respondents indicated that they experienced high financial stress to overwhelming stress and were dissatisfied with their current financial situation. It is also the first study to determine the level of financial wellness amongst a group of employees in the higher education sector using the Personal Finance Well-being Scale and only the third study that was found to use this scale amongst employees. This should enable employers to better support their employees.

The Effects of Job Insecurity on Employees’ Financial Well-Being and Work Satisfaction Among Chinese Pink-Collar Workers

This article examines the effects of job insecurity on employees’ financial well-being and work satisfaction. Based on a literature review on financial well-being, we proposed that financial well-being consists of two categories: personal financial well-being and family financial well-being. We developed a theoretical model that links job insecurity to employees’ personal and family financial well-being, and then to employees’ work satisfaction. Data were collected from 334 Chinese pink-collar workers in Macao. Results of the structural equation modeling showed that job insecurity negatively and significantly influenced employees’ personal financial well-being whereas employees’ personal financial well-being positively and significantly influenced work satisfaction directly and indirectly through employees’ family financial well-being. However, the direct relationships between job insecurity and employees’ family financial well-being and between job insecurity and work satisfaction were not significant.

Who Runs the Show? TMT Duality and Firms’ Internal Innovation

This paper introduces and defines TMT duality and examines its influence on firms’ internal innovation. To this end, we build on agency theory and knowledge-based view to explain how TMT duality can negatively influence internal creativity and access to external information making dual TMTs advance less innovative projects that limit personal losses and improve personal financial well-being. Further, the paper identifies TMTs’ involvement in R&D, TMTs’ compensation structure, and TMTs’ tenure as mitigators of the TMT duality-firms’ internal innovation relationship. A panel of knowledge intensive firms shows partial support to the proposed model. The proposed framework contributes to the corporate governance and agency body of work by offering a better understanding of the mechanisms behind the overlooked phenomenon of TMT duality. It also advances scholars’ understanding of the knowledge-intensive firms’ decision-making processes by shedding light on how dual positions of executives may serve as a platform for decision-making that differs from that of non-dual executives.

Losing public health insurance: TennCare reform and personal financial distress

A primary goal of health insurance is smoothing the financial risk associated with health shocks. We estimate the effect of exposure to health-insurance reform on individual-level financial well-being. Utilizing a plausibly exogenous shock to health insurance status resulting from a sudden disenrollment from Tennessee's Medicaid program in 2005, we find that the reform resulted in a 2.78 point decline in credit risk score for an individual in the median county in Tennessee. This study is the first examining the impact of losing any form of public assistance on personal financial well-being and our results inform ongoing discussions around Medicaid reform.

817-P: Financial Stress Factors, Psychological Factors, and Self-Management Outcomes in Emerging Adults with Type 1 Diabetes

Emerging adults, ages 18-25, with type 1 diabetes (T1D) may be vulnerable to financial and psychological barriers to self-management as they grapple with the developmental milestones of financial and self-management independence. This correlational, cross-sectional study described the relationships among financial stress factors (perceived stress, financial stress, and financial independence) and psychological factors (depressive symptoms, trait anxiety, and diabetes distress) on self-management outcomes (HbA1c and diabetes-related quality of life [DQoL]) in emerging adults with T1D. Data from 413 emerging adults recruited from the T1D Exchange (mean age 22.1±1.83 years; 62% female; 80.4% white; 37.3% private high-deductible insurance; T1D duration 13.2±4.41 years; 8.0±1.6 HbA1c) were analyzed. The Perceived Stress Scale, Personal Financial Well-Being Scale, Willingness to Pay Scale, Financial Independence Visual Analog Scale, Center for Epidemiological Studies-Depression Inventory, State-Trait Anxiety Inventory, Diabetes Distress Scale and DQoL Measure were completed via REDCap surveys. Hierarchical Multiple Regression analyses revealed that 20.6% of variance in HbA1c (F=15.555, p<.001) was explained by greater financial stress (β=-.197, p<.001) and diabetes distress (β=.181, p<.001); 64.5% of the variance in DQoL (F=148.469, p<.001) was explained by greater financial stress (β=-.112, p = .002), diabetes distress (β=.512, p<.001), trait anxiety (β=.183, p=.001) and depressive symptoms (β=.162, p=.001). Greater financial stress and psychological factors have detrimental impacts on self-management outcomes during emerging adulthood. Future interventions should assess and address these self-management barriers in practice. Disclosure J.E. Blanchette: Other Relationship; Self; Tandem Diabetes Care. V.B. Toly: None. J.R. Wood: Research Support; Self; AstraZeneca, Boehringer Ingelheim Pharmaceuticals, Inc. Speaker’s Bureau; Self; Xeris Pharmaceuticals, Inc. C.M. Musil: None. D.L. Morris: None. M.E. Votruba: None. Funding Frances Payne Bolton School of Nursing; Sigma Theta Tau International

Antecedents and Consequences of Using Social Media for Personal Finance

This study was intended to find out whether social media could be a solution to improve personal financial literacy and ability. The authors examined the antecedents and consequences of using social media for personal finance with survey data from 359 individuals who used social media tools to view, learn, post, or ask for financial information or advice. They found that usefulness and compatibility were two reasons why people use social media for personal finance, while ease of use and concerns/risks were not. The study also revealed that social media use for personal finance were associated with positive financial outcomes and user satisfaction, which in turn prompted users' intentions to continue using social media for personal finance in the future. These findings suggested that social media could be a legitimate and fruitful source for individuals and financial industry to improve personal financial well-being.

Financial literacy and responsible finance in the FinTech era: capabilities and challenges

ABSTRACTA growing body of evidence suggests that financial literacy plays an important role in financial well-being, and that differences in financial knowledge acquired early in life can explain a significant part of financial and more general well-being in adult life. Financial technology (FinTech) is revolutionising the financial services industry at an unrivalled pace. Views differ regarding the likely impact that FinTech is likely to have on personal financial planning, well-being and societal welfare. In an era of mounting student debt, increased (digital) financial inclusion, and threats arising from instances of (online) financial fraud, financial education and enlightened financial advising appropriate policy interventions that enhance financial and overall well-being. This special issue engages in this important academic and policy agenda by presenting a set of seven new papers emanating from four parallel streams of literature related to financial literacy and responsible finance.

Age 25-34 Financial Well-Being Scores

The overall goal for this research project is to examine and determine certain factors that affect a person’s financial well-being. More importantly, each factor will be analyzed and controlled in order to articulate an explanation as to why certain financial well-being scores differ from individuals in different age groups. It is assumed that each person determines their state of finances differently because of certain variables that affect them. This regression model will show that income, gender, and marital status affect an individual’s personal financial well-being more significantly when they are between the ages of 25 and 34, in comparison to all other ages under 62. Also, one will be able to see the financial well-being scores amongst all age groups and how they greatly vary between total scores.

Factors influencing the intention of students at a selected TVET college in the Western Cape to complete their National Certificate (Vocational) Business Studies programme

Student dropout, also called ‘early departure’, is a significant problem in South Africa’s post-school education and training (PSET) landscape, specifically in the technical and vocational education and training (TVET) sector. The challenge of student retention and programme completion (the antithesis of dropping out) is equally significant and important to TVET institutions, the state department responsible (Department of Higher Education and Training) and the South African economy. Early departure negatively influences the success rates of educational institutions. It also influences the chances of personal employment and financial well-being of individual students, causing financial ripple effects on society and government. Students’ decisions to remain or leave college or a programme are influenced by a variety of individual and social factors, both internal and external, including people close to the students and the policies, systems and structures within which students interact. These factors also encompass the quality and friendliness of teachers, social interaction with teachers and peers, and the role played by friends in academic achievement. This article reports on a study of student perspectives on the internal and external factors that influence their retention in, and completion of, a TVET college Business Studies National Certificate (Vocational) (NC(V)) programme in the Western Cape, South Africa. An improved understanding of student experiences, intentions, and decision-making processes leading to persistence provides a foundation for improving student retention and programme completion in a TVET environment.

User-Source Fit and Financial Information Source Selection of Millennials

This study investigated Millennials’ source selection while searching for financial information to improve financial well-being. Results from an online survey of 488 business students at a Western U.S. university showed that Millennials used multiple sources when looking for financial information, but only sources whose perceived attributes fit the seekers’ preferences were considered; respondents favored family, employer/university, and government sources. Associations between personal characteristics (personal financial well-being, financial issue involvement, financial health self-efficacy, gender, and perception of source attributes) and financial information source selection were examined. Findings suggest financial practitioners, universities, and employers can improve their “fit” as financial information sources for Millennials by cocreating financial information with them, tailoring the communication channels, and enhancing the accessibility of information.

Assessment of debt counselling services: A case of Gauteng, South Afrca

The high level of over-indebtedness in Gauteng is cause for concern. The number of consumers applying for debt counselling as well as the registered debt counsellors is increasing. The study on which this article reports aimed at exploring and describing the role of debt counselling in terms of personal financial well-being of consumers in Gauteng. Fifteen debt counsellors were interviewed and 300 consumers were surveyed. Data was analysed using descriptive statistics. There was no evidence that consumers who received debt counselling improved in their financial standing. It was observed that both debt counsellors and consumers lacked financial management skills. It was concluded that, while debt counselling is important, it does not necessarily improve the financial well-being of consumers. It is recommended that financial management skills should serve as a pre-requisite for debt counselling registration and consumers be introduced to personal financial management education at an early stage of their lives.

Relationship between Financial Literacy and Personal Financial Wellbeing: An Empirical Study

Relationship between Financial Literacy and Personal Financial Wellbeing: An Empirical Study

An Exploratory Study of Personal Financial Wellbeing Determinants: Examining the Moderating Effect of Gender

Financial educators have placed importance on the study of the determinants of financial wellbeing for some decades now. The subject of the research has comprised factors such as marital status, employment status, education, income and health, which impact on financial wellbeing. However, there is as yet, a lack of research on the perceived influence of differences in financial wellbeing between the genders, particularly within the Asian context. The present research evaluates the moderating effect of gender on the determinants of financial wellbeing among college students in Malaysia. Samples for this study comprised students in Malaysian universities. The multi stage stratified random sampling technique was utilized to select the respondents, while self-administered questionnaires were used to collect the data. Further, a multi-group analysis approach using AMOS was used in studying the influence of gender on financial wellbeing. The findings of the present research show that among college students, gender has a substantial moderating effect on the factors related to financial wellbeing.

The Relationship Between Financial Efficacy, Satisfaction With Remuneration And Personal Financial Well-Being

Financial stress is a condition that is becoming more prevalent in todays society due to factors such as high debt levels, low savings and economic recessions. Research has found that financial stress negatively influences employees performance at work. With these increasing pressures on personal finances and its interference on work, this study considers whether management should attempt to improve employees financial well-being. Management needs to be convinced that their actions can improve their employees financial well-being. This study established and measured the relationship that the subjective measures financial efficacy and satisfaction with remuneration have on financial well-being. A sample size of 9 057 employees from different sectors in South Africa was used. Confirmatory factor analyses were used, as the survey was based on a previously developed survey and it was already known which items load onto which factors. Data was analysed using Pearson correlation coefficients and multiple regression analysis. Three hypotheses were tested. Hypothesis 1: There is a relationship between satisfaction with remuneration and financial well-being. Hypothesis 2: There is a relationship between financial well-being and financial efficacy. Hypothesis 3: Financial efficacy moderates the relationship between satisfaction with remuneration and financial well-being. The results from this study supported all three hypotheses. Personal financial efficacy and satisfaction with remuneration were found to have a strong positive relationship with financial well-being. The study also established that the relationship between remuneration satisfaction and financial well-being was stronger in people with higher financial efficacy. It is argued that management can intervene with employees financial well-being by improving financial efficacy through financial education and by improving their satisfaction with remuneration. Satisfaction with remuneration can be increased by increasing actual remuneration and benefits, addressing administrative issues of the pay system, addressing staff morale or by increasing financial efficacy. Staff with higher well-being will contribute to the better performance of the entity.

The Role of Professors in Improving Financial Literacy: Roundtable Session Highlights from the 2012 FMA Annual Meeting

This roundtable session was organized to answer the question:“What can I do as a finance professor to increase the personal financial capability of my students and others in my community?” The panelist for this roundtable were chosen as “best in class” examples of professors who have developed programs and curricula on their campuses that promote financial literacy by lifting the level of an individual’s financial acumen and decision making ability. Each panelist presents a unique and compelling model for enhancing the financial wellbeing of students on their campus. The success of these programs highlights the level of demand at universities for personal finance education, financial counseling, and financial wellbeing support on our campuses.

The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach

We examined the construct of financial wellness and its relationship to personal wellbeing, with a focus on the role of financial literacy. Gender comparisons are made using a structural equation modeling analysis including personal wellbeing, financial satisfaction, financial status, financial behavior, financial attitude, and financial knowledge. Males ranked higher in financial satisfaction and financial knowledge whereas females ranked higher in personal wellbeing. Joo’s (2008) concept of financial wellness as multidimensional is supported though the result is improved when a causal model of sub-components is estimated. The relationship of all variables to personal wellbeing is mediated by financial satisfaction, with gender differences: In females the main source of financial satisfaction is financial status whereas in males it is financial knowledge.

Economic Salience and Differential Abstention in Presidential Elections

Previous studies of American voting behavior have assumed that variations in turnout across election years are the result of fluctuations in the determinants of the voting decision. In this article I suggest that levels of turnout may also vary from year to year because of shifting relationships between economic variables and the voting decision. I use pooled cross-sectional data from the 1980, 1984, 1988, and 1992 American National Election Studies to test the hypothesis that Black, working-class, and unemployed individuals who stayed home from the polls in 1980 and 1988 became mobilized during the 1984 and 1992 presidential elections because of the nature of the economy and the party of the incumbent president. I extend this analysis to include athtudinal variables that measure perceptions about the state of the national economy and the effect of national policies on one's personal financial well-being. The results of the probit analyses suggest that (a) working-class individuals were less likely to vote in the 1980 and 1988 elections, but this variation vanished in 1984 and 1992, and (b) both "pocketbook" and "sociotropic" concern regarding unemployment led to increased participation in the 1984 and 1992 elections, in contrast to the 1980 and 1988 elections.

Impacts of national economic reforms upon urban households in an African society

Many Third-World nations have implemented structural reforms as conditions for receiving financial assistance from international banks. Whereas the effects of these reforms on national economic performance are carefully monitored, there often is a paucity of information about their direct impact upon citizens. Findings are reported here from an assessment of some social and economic effects of recent structural reforms in Zambia, Africa, upon upper-, middle-, and lower-status urban households. Persons at all socioeconomic levels perceived that the reforms had brought a deterioration in both the economy and their personal financial well-being. Poor families were especially hard hit by the increased costs of necessities, and most were experiencing difficulty in coping with their changed circumstances. The findings point up the importance of including socioeconomic impact assessment in national policy making.