How Executive Functioning and Financial Self-efficacy Predict Subjective Financial Well-Being via Positive Financial Behaviors

Shekinah E. Dare (), Wilco W. Dijk (), Eric Dijk (), Lotte F. Dillen (), Marcello Gallucci () and Olaf Simonse ()
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Shekinah E. Dare: Leiden University
Wilco W. Dijk: Leiden University
Eric Dijk: Leiden University
Lotte F. Dillen: Leiden University
Marcello Gallucci: University of Milano-Bicocca
Olaf Simonse: Leiden University

Journal of Family and Economic Issues, 2023, vol. 44, issue 2, No 2, 232-248

Abstract: Abstract Financial well-being is a desirable state as it benefits individuals, families, organizations, and society, and these benefits reach beyond the financial domain. We assessed financial well-being as two components (current financial stress and expected future financial security) and used data from a representative sample of adults in the United Kingdom (n = 411). Our study provides novel insights based on preregistered hypotheses, method, and analysis plan on the Open Science Framework. We hypothesized that both executive functioning and financial self-efficacy are positively related to financial well-being via positive financial behaviors. We also hypothesized that executive functioning moderated the indirect relation of financial self-efficacy with financial well-being, and that financial self-efficacy moderated the indirect relation of executive functioning with financial well-being. As predicted, results showed that financial self-efficacy was strongly positively related to financial well-being via positive financial behaviors. Our results did not show that executive functioning was related to financial well-being via positive financial behaviors, nor that executive functioning or financial self-efficacy operated as moderators. This study provides possible strategies for financial practitioners and service providers, among others, to help individuals and families better their financial behaviors and their financial well-being.

Keywords: Executive functioning; Financial self-efficacy; Financial behavior; Subjective financial well-being (search for similar items in EconPapers)
JEL-codes: G41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10834-022-09845-0

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