Psychological factors contributing to the financial weil-being of an individual

A review of empirical literature

T. S. Shobha, Suman Chakraborty

Research output: Contribution to journalArticle

Abstract

Financial well-being is a yardstick for the measurement of individuals' financial security and their ability to make financial choices both in the present and future. Financial well-being in its perceptual nature is the most effective and reliable measure of the construct. Review of literature for financial well-being indicated that beyond the demographic, social, and economic factors, it is the psychological factors that have a greater impact on the financial well-being of an individual. These psychological factors needed further investigation for identification of specific psychological factors affecting financial well-being. This study attempted to analyze empirical and scholarly research findings. Twenty five papers downloaded from various electronic databases and from various peer reviewed journals in the area of financial well-being during 2000-2016 were considered for the present study. Review of selected papers suggested significant gaps pertaining to the interaction of psychology with financial well-being and also identified positive financial behaviours like financial literacy and propensity to plan affecting financial wellbeing. This assemblage of reviewed research papers will be useful for the academia and industry to cultivate understanding on the psychological rumblings of an individual and would promote positive financial behaviours leading to greater financial wellbeing.

Original languageEnglish
Pages (from-to)51-66
Number of pages16
JournalIndian Journal of Finance
Volume11
Issue number10
DOIs
Publication statusPublished - 01-10-2017

Fingerprint

Psychological factors
Well-being
Financial behavior
Peers
Industry
Interaction
Financial security
Economic factors
Psychology
Social factors
Financial literacy
Demographic factors
Data base
Psychological
Propensity

All Science Journal Classification (ASJC) codes

  • Finance

Cite this

@article{34405d62a872493fab2e2dde6daca3d5,
title = "Psychological factors contributing to the financial weil-being of an individual: A review of empirical literature",
abstract = "Financial well-being is a yardstick for the measurement of individuals' financial security and their ability to make financial choices both in the present and future. Financial well-being in its perceptual nature is the most effective and reliable measure of the construct. Review of literature for financial well-being indicated that beyond the demographic, social, and economic factors, it is the psychological factors that have a greater impact on the financial well-being of an individual. These psychological factors needed further investigation for identification of specific psychological factors affecting financial well-being. This study attempted to analyze empirical and scholarly research findings. Twenty five papers downloaded from various electronic databases and from various peer reviewed journals in the area of financial well-being during 2000-2016 were considered for the present study. Review of selected papers suggested significant gaps pertaining to the interaction of psychology with financial well-being and also identified positive financial behaviours like financial literacy and propensity to plan affecting financial wellbeing. This assemblage of reviewed research papers will be useful for the academia and industry to cultivate understanding on the psychological rumblings of an individual and would promote positive financial behaviours leading to greater financial wellbeing.",
author = "Shobha, {T. S.} and Suman Chakraborty",
year = "2017",
month = "10",
day = "1",
doi = "10.17010/ijf/2017/v11i10/118775",
language = "English",
volume = "11",
pages = "51--66",
journal = "Indian Journal of Finance",
issn = "0973-8711",
publisher = "Associated Management Consultants Private Limited",
number = "10",

}

Psychological factors contributing to the financial weil-being of an individual : A review of empirical literature. / Shobha, T. S.; Chakraborty, Suman.

In: Indian Journal of Finance, Vol. 11, No. 10, 01.10.2017, p. 51-66.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Psychological factors contributing to the financial weil-being of an individual

T2 - A review of empirical literature

AU - Shobha, T. S.

AU - Chakraborty, Suman

PY - 2017/10/1

Y1 - 2017/10/1

N2 - Financial well-being is a yardstick for the measurement of individuals' financial security and their ability to make financial choices both in the present and future. Financial well-being in its perceptual nature is the most effective and reliable measure of the construct. Review of literature for financial well-being indicated that beyond the demographic, social, and economic factors, it is the psychological factors that have a greater impact on the financial well-being of an individual. These psychological factors needed further investigation for identification of specific psychological factors affecting financial well-being. This study attempted to analyze empirical and scholarly research findings. Twenty five papers downloaded from various electronic databases and from various peer reviewed journals in the area of financial well-being during 2000-2016 were considered for the present study. Review of selected papers suggested significant gaps pertaining to the interaction of psychology with financial well-being and also identified positive financial behaviours like financial literacy and propensity to plan affecting financial wellbeing. This assemblage of reviewed research papers will be useful for the academia and industry to cultivate understanding on the psychological rumblings of an individual and would promote positive financial behaviours leading to greater financial wellbeing.

AB - Financial well-being is a yardstick for the measurement of individuals' financial security and their ability to make financial choices both in the present and future. Financial well-being in its perceptual nature is the most effective and reliable measure of the construct. Review of literature for financial well-being indicated that beyond the demographic, social, and economic factors, it is the psychological factors that have a greater impact on the financial well-being of an individual. These psychological factors needed further investigation for identification of specific psychological factors affecting financial well-being. This study attempted to analyze empirical and scholarly research findings. Twenty five papers downloaded from various electronic databases and from various peer reviewed journals in the area of financial well-being during 2000-2016 were considered for the present study. Review of selected papers suggested significant gaps pertaining to the interaction of psychology with financial well-being and also identified positive financial behaviours like financial literacy and propensity to plan affecting financial wellbeing. This assemblage of reviewed research papers will be useful for the academia and industry to cultivate understanding on the psychological rumblings of an individual and would promote positive financial behaviours leading to greater financial wellbeing.

UR - http://www.scopus.com/inward/record.url?scp=85032217202&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85032217202&partnerID=8YFLogxK

U2 - 10.17010/ijf/2017/v11i10/118775

DO - 10.17010/ijf/2017/v11i10/118775

M3 - Article

VL - 11

SP - 51

EP - 66

JO - Indian Journal of Finance

JF - Indian Journal of Finance

SN - 0973-8711

IS - 10

ER -