 Financial capability and wellbeing of vulnerable consumersJing Jian Xiao and Nilton Porto Journal of Consumer Affairs, 2022, vol. 56, issue 2, 1004-1018 Abstract: Consumer financial capability can be defined variously by different researchers. In this study, financial capability is assumed to have three components, financial knowledge, financial behavior, and financial skills. This study examines relative contributions of financial capability components to financial wellbeing among vulnerable consumers. With data from the National Financial Wellbeing Survey commissioned by the Consumer Financial Protection Bureau (CFPB), results show that among financial capability components, financial behavior contributes the most to financial wellbeing of the whole sample, followed by financial skill and financial knowledge. In addition, group differences surface when subsamples in terms of age, poverty status, confidence, and fraud victim status are examined. Results suggest that for low‐income consumers, encouraging them to engage in desirable financial behaviors is more important than teaching them financial knowledge and skills. Findings have implications for financial educators, practitioners, and policymakers to help them recognize the proper financial education or program to be delivered based on consumer vulnerability and components of financial capability. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jconsa:v:56:y:2022:i:2:p:1004-1018 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Consumer Affairs is currently edited by Sharon Tennyson More articles in Journal of Consumer Affairs from Wiley Blackwell |
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