Understanding financial wellbeing

Marius van der Merwe

Chapter 9 in Research Handbook on Personal Finance, 2026, pp 145-165 from Edward Elgar Publishing

Abstract: Financial wellbeing (FWB) is a multifaceted concept influencing an individual's overall sense of wellbeing. Traditionally, FWB has been associated with an individual's income or level of wealth. However, the field of behavioral finance has shown that while income and wealth are important factors, individuals also assess their financial circumstances through the lens of their personal goals, aspirations, and values. This chapter explores how individuals define FWB and identifies the key factors that influence it. Research indicates that socio-demographic variables, financial behavior, psychological traits, and financial capability all directly or indirectly shape FWB. Additionally, the chapter examines how culture, life stage, and attitudes toward money impact FWB. Finally, the chapter presents a conceptual model illustrating the relationships between these various factors.

Keywords: Financial wellbeing; Financial services; Financial literacy; Personal finance; Behavioural finance; Financial planning (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035323005
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