Financial Well-Being in the United States: The Roles of Financial Literacy and Financial Stress

Yu Zhang and Swarn Chatterjee ()
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Yu Zhang: Department of Financial Planning, Housing and Consumer Economics, College of Family and Consumer Sciences, University of Georgia, Athens, GA 30602, USA
Swarn Chatterjee: Department of Financial Planning, Housing and Consumer Economics, College of Family and Consumer Sciences, University of Georgia, Athens, GA 30602, USA

Sustainability, 2023, vol. 15, issue 5, 1-18

Abstract: This paper examines the role of financial stress in explaining the relationship between financial literacy and financial well-being among individuals in the United States. The 2018 FINRA National Financial Capability Study dataset is used for the empirical analyses of this study. The results found that financial literacy was positively associated with financial well-being. The study also found that the association between financial literacy and financial well-being was mediated by perceived financial stress experienced by individuals. Additionally, the results from the moderated mediation model showed that while financial stress mediated the association between financial literacy and financial well-being, the association between financial stress and financial well-being was moderated by financial literacy. Financial education was positively associated with financial literacy in this study. The broader implications of the main findings of this study for individuals’ sustainable financial well-being are presented for policymakers, financial educators, and financial counselors and planners.

Keywords: economic sustainability; financial education; financial literacy; financial well-being; financial stress; financial sustainability; poverty; social sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:5:p:4505-:d:1086153

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