Measuring financial anxiety (original) (raw)
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Contemporary Family Therapy, 2019
When financial and mental health issues intersect, the study and practice of financial therapy is warranted. The purpose of this study was to determine the extent to which the following two psychosocial constructs-financial knowledge and generalized anxiety-are associated with and related to risky financial management behavior. Research findings from a sample of 110 clients who sought services at an integrated service clinic suggest that anxiety and financial knowledge individually are significantly associated with financial behaviors. In addition, evidence suggests a moderating effect between anxiety and financial knowledge exists. The outcomes associated with this study can be used by not only financial therapists, but also mental health clinicians and financial professionals when developing, presenting, and implementing behaviorally focused treatments, interventions, and counseling recommendations within the professional's scope of practice.
Financial Anxiety, Physiological Arousal, and Planning Intention
Journal of Financial Therapy, 2014
Results from this exploratory clinical study indicated that financial anxiety-holding an unhealthy attitude about one's financial situation-and physiological arousal-the physical precursor to behavior-play important roles in shaping consumer intention to engage in future financial planning activity. Findings suggested that those who are most likely to engage the services of a financial adviser exhibit low levels of financial anxiety and moderate to high levels of physiological arousal. The least likely to seek the help of a financial adviser were those who exhibited high financial anxiety and low physiological arousal. Results supported findings documented in the literature that high anxiety levels often lead to a form of self-imposed helplessness. In order to move those experiencing financial anxiety towards financial solutions, financial advisers ought to take steps to simultaneously reduce financial stressors and stimulate arousal as a way to promote behavioral change and help seeking.
The Correlation between Anxiety and Money Management
College student journal, 2013
Finances are frequently cited by college administrators as a top cause of college student stress and drop out. Positive financial behaviors can help prevent financial stress and possibly help with college student retention rates. According to past research, financial behaviors can be predicted based on certain demographic characteristics, resource availability, and financial knowledge. One of the gaps in the literature revolves around the impact that anxiety plays in positive and negative financial behaviors. Students who are anxious are sure to be experiencing a high degree of stress. Using primary data collected from students attending a large Midwestern university, results indicate that anxiety has a significant effect on three financial behaviors. Implications suggest that college financial counseling and mental health programs collaborate to provide holistic services to students which may help to retain students due to financial stress and anxiety. Keywords: Mental Health Distr...
Anxiety Credit card behavior and financial education Issues 11 7 2016
This paper studies the determinants of financial anxiety and the role that anxiety plays in consumers' credit card repayment behavior. Our main interest is to uncover consumer's perception of self, regarding consumption and borrowing behavior, anxiety and consequent repayment capacity. We pay particular attention to the role that trans-generational financial knowledge, financial literacy, present-bias, impatience and naïve behavior on financial management practices of credit card behavior have on anxiety. Exploratory estimates using a series of ordered Probit models with anxiety levels as dependent variable, first, and repayment frequency on credit card second, provide robust support to the hypothesis that issues relating to poor mental accounting on expenditure, combine with impatience and present-bias through overspending result in higher levels of anxiety. To this end, higher financial literacy does not cause less anxiety, yet it does improve repayment rates on credit cards. In addition, it appears that parental driven financial education while having the desirable effect to improve repayment behavior on credit card debt, also has a negative effect on the anxiety level. A robust result of our study indicates that higher financial anxiety in turn increases the probability to accumulate a month-to-month balance on credit cards. Anxiety seems to be endemic and persistent once it settles in.
Journal of Financial Therapy, 2023
This study examined whether the association between financial knowledge and financial anxiety depends on an individual's financial self-efficacy by incorporating an interaction term between financial self-efficacy and financial knowledge. The self-efficacy component of the social cognitive theory of self-regulation has been tested using the 2018 National Financial Capability Study dataset. Households with higher financial knowledge and financial selfefficacy had lower levels of financial anxiety. After adding interaction terms of financial knowledge and financial self-efficacy in the model, the relationship between financial knowledge and financial anxiety depended on the levels of financial self-efficacy. Among those with anything less than high financial self-efficacy, the association between financial knowledge and financial anxiety weakens. The study found that financial knowledge and financial self-efficacy were significant in explaining financial anxiety and suggested implications for researchers, educators, and practitioners.
Journal of Financial Therapy, 2023
This study examined whether the association between financial knowledge and financial anxiety depends on an individual's financial self-efficacy by incorporating an interaction term between financial self-efficacy and financial knowledge. The self-efficacy component of the social cognitive theory of self-regulation has been tested using the 2018 National Financial Capability Study dataset. Households with higher financial knowledge and financial selfefficacy had lower levels of financial anxiety. After adding interaction terms of financial knowledge and financial self-efficacy in the model, the relationship between financial knowledge and financial anxiety depended on the levels of financial self-efficacy. Among those with anything less than high financial self-efficacy, the association between financial knowledge and financial anxiety weakens. The study found that financial knowledge and financial self-efficacy were significant in explaining financial anxiety and suggested implications for researchers, educators, and practitioners.
Journal of Financial Management, Markets and Institutions (ISSN 2282-717X) Fascicolo 1, gennaio-giugno 2017 Copyright c by Società editrice il Mulino, Bologna. Tutti i diritti sono riservati. Per altre informazioni si veda https://www.rivisteweb.it Licenza d'uso L'articolò e messo a disposizione dell'utente in licenza per uso esclusivamente privato e personale, senza scopo di lucro e senza fini direttamente o indirettamente commerciali. Salvo quanto espressamente previsto dalla licenza d'uso Rivisteweb, ` e fatto divieto di riprodurre, trasmettere, distribuire o altrimenti utilizzare l'articolo, per qualsiasi scopo o fine. Tutti i diritti sono riservati. Abstract This paper studies the determinants of financial anxiety and the role that anxiety plays in consumers' credit card repayment behavior. Exploratory estimates with anxiety levels as dependent variable, first, and repayment frequency on credit card second, provide robust support to the hypothesis that i...
Determinants of financial worry and rumination
Journal of Economic Psychology, 2019
Significant parts of populations in developed countries frequently worry and ruminate about their finances. Financial worry and rumination can have serious psychological consequences, resulting in lower psychological well-being, mental-health problems, and impaired cognitive functioning. The literature lacks studies investigating the socio-demographic antecedents of and the financial processes underlying financial worry and rumination. The purpose of our study was to investigate the socio-demographic and financial antecedents of financial worry and rumination (FWR) and the financial factors mediating these relationships. We collected online self-administered survey data from a sample of the Dutch population (N = 1040). Using confirmatory factor analysis, we found that a bifactor model, including a strong and reliable general factor, provided the best explanation of the structure underlying FWR. We developed a parallel mediation model and investigated its structural relationships using structural equation modeling. After controlling for multiple hypotheses testing, our results show that income, past positive changes in one's finances, and age are negatively related to FWR. We found no support for education level and only weak support for expected changes in one's finances as antecedents. Furthermore, the explained variance in FWR substantially improved after adding the mediators of making ends meet, financial buffer, and perceived debts. Among these mediators, making ends meet played a key role explaining respectively half and two-thirds of the total effects of income and past changes in one's finances on FWR. These results were robust under several specifications and were generalizable to the Dutch population. We discuss the implications of our results for future research and government policy. 1. Introduction Significant parts of populations in developed countries are concerned about and preoccupied with their finances. According to the Gallup-Sharecare Index, daily surveyed in the period 2013-2017, 32-40 percent of US-citizens worried about their finances in the last seven days (Gallup, 2018). In the UK, one in five adults report they are drowning in worries about money and debts (Money Advice Services, 2017). Low-income individuals worry and ruminate more about their finances than higher income people (Gallup, 2017; Johar, Meng, & Wilcox, 2015). For example, while respectively 34 and 14 percent of middle-and high-income American households reported being moderately or very worried about not having enough money to pay monthly bills, these rates were strikingly higher (63 percent) for low-income families (Gallup, 2017). Financial worry and financial rumination are the target constructs of interest in this paper. We define financial worry as repeated and negative thinking about the uncertainty of one's (future) financial situation, while financial rumination refers to repetitive, passive, and pessimistic thinking about the possible causes and consequences of one's financial concerns. These constructs belong to a
2020
This study aims to analyze how Financial Literacy, Financial Behaviour and Financial Anxiety influence Financial Well Being of Top Management Level Employees. A cross-sectional survey was employed on 256 respondents randomly selected from top management level of manufacture company. It then tests their hypothesized relationships with the use of Partial Least Squares (PLS), a structural equation modelling technique. The result reveal that financial behaviour and financial anxiety significantly influence the financial well-being of employee. Financial literacy also influences the financial anxiety, financial behaviour and financial well-being. Financial behaviour of an individual also determine the level of financial wellbeing of the respondents. Positive and healthy financial behavior leads toward the higher level of financial wellbeing. There is significant and positive effect of financial literacy to financial behaviour of top management level of employees.
Anxious spenders: Background factors of financial vulnerability
Economics & Sociology, 2019
- Background: Financial literacy, its attitudinal and behavioral components are subject to increasing awareness in Hungary, especially after the economical crisis of 2018. 2) Methods: Our study examines the selected aspects of the Hungarian young adults' behavior, using the data of the survey conducted on a representative sample to compare financial knowledge, attitudes, behaviors and habits of the 18-35 year-olds with the group of older ones. We also analyze what kind can describe the selected groups, and whether clusters can be established. 3) Results: Financial consciousness and setting long-term financial goals are less typical among young adults. They intend to reach their financial aims not by decreasing their costs or saving but rather by preparing action plans or undertaking more work. Three clusters were identified: worried spenders, satisfied risk-takers and careful considerers. 4) Conclusions: Financial vulnerability is specific to the worried spenders, this cluster represents almost a quarter of young adults. They live for today, financial problems make their existence harder, this, in turn, causes depression, they do not dispose savings. Furthermore, when comparing this cluster to the two other clusters, their financial knowledge and skills are of lower level, less of them make a budget, their income is lower and they tend not to set financial goals as such.