The Moderating Effect of Generalized Anxiety and Financial Knowledge on Financial Management Behavior (original) (raw)
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Journal of Neuroscience, Psychology, and Economics, 2012
There is a scarcity of information concerning the emotional aspects of financial management. Two studies were conducted to evaluate the measurement of conscious and intuitive emotional anxiety toward one's personal finances. Along with a selfreported financial anxiety questionnaire, a modified Emotional Stroop Test (EST) and Dot-Probe Paradigm (DPP) were separately utilized to evaluate financial anxiety. In both studies, the self-reported financial anxiety questionnaire correlated significantly with the implicit measures. Furthermore, the DPP was predominantly characterized by avoidance of financial information. Financial anxiety was shown to be a separate construct from depression and general anxiety. These findings indicate that those who report having financial anxiety also display reaction latencies in the processing of financial information. Accordingly, financial behavior could be more comprehensively evaluated and policy could be better determined by incorporating financial anxiety into models of financial illiteracy, mismanagement, and debt.
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...
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.
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.
What is Financial Therapy? Discovering Mechanisms and Aspects of an Emerging Field
2012
Very little research currently exists specifically on the topic of financial therapy. In this emerging field, it is important to lay the groundwork for future practice and study. The purpose of this study was to answer the question, "What are the mechanisms and aspects of financial therapy?" Using qualitative methods, eighteen members of the Financial Therapy Association were interviewed by members of the research team. The participants included six financial professionals, six mental health professions, and six researchers/educators all engaged in financial therapy. Six categories emerged from the analysis of data, including: (a) integration, (b) complexity, (c) help-seeker issues, (d) helper issues, (e) process, and (f) research. The analysis resulted in a conceptual framework and ten theoretical assumptions of financial therapy.
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.
European Online Journal of Natural and Social Sciences, 2014
Global competition, technology, value changes and population along with expense increase and lack of awareness about features and functions of these advantages caused countries to take into account the importance of financial planning training. Thus, individuals' financial awareness, financial well-being, and financial worry have become the matter of interest of investigators and some studies have been conducted in this area. In this regard, the current study investigated the relationship between financial literacy, financial well-being, and financial worry in the professors of Yazd Islamic Azad University. For this purpose, a questionnaire was designed; then, using random sampling, it was distributed among selected individuals. The data was analyzed using statistical analyses such as correlation and binomial. Results showed the strategy of "reducing expenses and the cost of living" is agreed on by most groups, except the group "having both financial literacy and financial well-being". In addition, none of the groups use specialized consulting services in financial area. Also, purchasing real estate is one of the common strategies. Finally, higher financial well-being caused less financial worry.
How Do Distrust and Anxiety Affect Saving Behavior?
Family and Consumer Sciences Research Journal, 2012
Using scales developed from a modified Yamauchi and Templer's Money Attitudes Scale (1982), this research examined how distrust and anxiety, demographic factors, and financial management behavior were associated with being a regular saver among low-and moderate-income households. Data were collected online. The national sample consisted of 749 respondents. The results of the Ordinary Least Squares regression on the financial management behavior score showed that those with higher levels of distrust and lower levels of anxiety tended to engage in more recommended financial management behaviors. The results of the logistic regression on saving regularly showed that anxiety and financial management behaviors were associated with savings behavior. The results of hierarchical logistic regressions showed that those who practiced more recommended financial management behaviors and those who had lower levels of anxiety were more likely to save regularly. Also, those with more income and more net worth were more likely to save regularly. Male respondents were more likely to save regularly than female respondents. As age increased, respondents were less likely to save regularly.
An initial membership profile of the Financial Therapy Association
The Financial Therapy Association (FTA) was established in 2010 to bring practitioners and researchers together to develop tools and techniques to address emotional, behavioral, relational, cognitive, and economic aspects of financial health. Ultimately, those interested in the new field of financial therapy are most interested in answering the following key questions: Why do people do what they do with money and how can practitioners better help their clients deal with the complexities of the volatile economy that places tremendous stress on individuals and families? Financial therapy is emerging as a unique field that links scholars, practitioners, and mental health professionals in ways that consider these and other important questions. FTA is especially unique because of its diverse and accomplished membership, which includes mental health and financial professionals, educators, and researchers. The purpose of this "Profile" is to highlight how experienced and established professionals from both the mental health and finance domains have joined together to build a new profession, and to provide benchmark information regarding how the practice of financial therapy is occurring in the United States and other countries.