Skip to main content
View expanded cover

Handbook of Consumer Finance Research pp 21–33Cite as

Personal Financial Wellness

  • Chapter

Abstract

As the importance of financial health of individuals and families continues to grow, people often use the term “financial wellness” to mean the level of a person’s financial health. Financial wellness is a comprehensive, multidimensional concept incorporating financial satisfaction, objective status of financial situation, financial attitudes, and behavior that cannot be assessed through one measure. This chapter discusses the concept and measurement of personal financial wellness and presents “Financial Wellness Diagram.” Future research directions are also discussed.

Keywords

  • Objective Status
  • Financial Wellness
  • Financial Satisfaction
  • Social Indicator Research
  • Money Income

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-0-387-75734-6_2
  • Chapter length: 13 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   89.00
Price excludes VAT (USA)
  • ISBN: 978-0-387-75734-6
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   119.00
Price excludes VAT (USA)
Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Back, E., & DeVaney, S. A. (2004). Assessing the baby boomers’ financial wellness using financial ratios and a subjective measure. Family and Consumer Sciences Research Journal, 32, 321–348.

    CrossRef  Google Scholar 

  • Bailey, A. W. (1987). Social and economic factors affecting the financial well-being of families. Journal of Home Economics, Summer, 14–18.

    Google Scholar 

  • Blau, F. D. (1998). Trends in the well-being of American women, 1970–1995. Journal of Economic Literature, 36(1), 112–165.

    Google Scholar 

  • Blinder, A. S., Kristol, I., & Cohen, W. J. (1980). The level and distribution of economic well-being. In M. Feldstein (Ed.), The American economy in transition (pp. 415–479). Chicago: University of Chicago Press.

    Google Scholar 

  • Breen, R. F. (1991). The financially mature: What they want and how to help them get it. Insurance Sales, 134(9), 8–10.

    Google Scholar 

  • Cantril, H. (1965). The pattern of human concerns. New Brunswick, NJ: Rutgers University Press.

    Google Scholar 

  • Cutler, N. E. (1995, January). Three myths of risk-tolerance: What clients are not telling you. Journal of the American Society of CLU & ChFC, 49, 33–37.

    Google Scholar 

  • Davis, E. P., & Schumm, W. R. (1987). Family financial satisfaction: The impact of reference point. Home Economics Research Journal, 14, 123–131.

    Google Scholar 

  • DeVaney, S. A. (1993). Change in household financial ratios between 1983 and 1986: Were American households improving their financial status? Financial Counseling and Planning, 4, 31–46.

    Google Scholar 

  • DeVaney, S. A. (1994). The usefulness of financial ratios as predictors of household insolvency: Two perspectives. Financial Counseling and Planning, 5, 5–24.

    Google Scholar 

  • DeVaney, S. A., & Lytton, R. T. (1995). Household insolvency: A review of household debt repayment, delinquency and bankruptcy. Financial Services Review, 4, 137–156.

    CrossRef  Google Scholar 

  • Dickinson, A. (1996). The financial well-being of women and the family. The American Journal of Family Therapy, 24(1), 65–73.

    CrossRef  Google Scholar 

  • Diener, E., Suh, E., & Osihi, S. (1998). Recent studies on subjective well-being. Indian Journal of Clinical Psychology, 24, 25–41.

    Google Scholar 

  • Fergusson, D. M., Horwood, L. J., & Beautrais, A. L. (1981). The measurement of family material well-being. Journal of Marriage and the Family, 43, 715–725.

    CrossRef  Google Scholar 

  • Fletcher, C., & Lorenz, F. (1985) Social structural influences on the relationship between objective and subjective indicators of economic well-being. Social Indicators Research, 16, 333–345.

    CrossRef  Google Scholar 

  • Garman, E. T., & Forgue, R. E. (2006). Personal finance (7th ed.). Boston: Houghton Mifflin Co.

    Google Scholar 

  • George, L. K. (1992). Economic status and subjective well-being: A review of the literature and an agenda for future research. In N. E. Cutler, D. W. Gregg, & M. P. Lawton (Eds.), Aging, money, and life satisfaction: Aspects of financial gerontology (pp. 69–99). New York: Springer.

    Google Scholar 

  • Godwin, D. D. (1994). Antecedents and consequences of newlyweds’ cash flow management. Financial Counseling and Planning, 5, 161–190.

    Google Scholar 

  • Greenley, J. R., Greenberg, J. S., & Brown, R. (1997). Measuring quality of life: A new and practical survey instrument. Social Work, 42, 244–254.

    PubMed  Google Scholar 

  • Greninger, S. A., Hampton, V. L., Kitt, K. A., & Achacoso, J. A. (1996). Ratios and benchmarks for measuring the financial well-being of families and individuals. Financial Services Review, 5(1), 57–70.

    CrossRef  Google Scholar 

  • Hansen, J. C., Rossberg, R. H., & Cramer, S. H. (1994). Counseling: Theory and practice. Boston: Allyn and Bacon.

    Google Scholar 

  • Haveman, R., & Wolfe, B. (1990). The economic well-being of the disabled. Journal of Human Resources, 25(1), 32–54.

    CrossRef  Google Scholar 

  • Hayhoe, C. R. (1990). Theoretical model of perceived economic well-being. Annual Proceedings of the Association for Financial Counseling and Planning Education, 116–141.

    Google Scholar 

  • Hayhoe, C. R., & Wilhelm, M. S. (1998). Modeling perceived economic well-being in a family setting: A gender perspective. Financial Counseling and Planning, 9(1), 21–34.

    Google Scholar 

  • Headey, B. (1993). An economic model of subjective well-being: Integrating economic and psychological theories. Social Indicators Research, 28, 97–116.

    CrossRef  Google Scholar 

  • Hira, T. K., & Mugenda, O. M. (1999). The relationships between self-worth and financial beliefs, behavior, and satisfaction. Journal of Family and Consumer Sciences, 91(4), 76–82.

    Google Scholar 

  • Jeries, N., & Allen, C. M. (1986). Satisfaction/dissatisfaction with financial management among married students. Proceedings of American Council on Consumer Interests Annual Conference, 63–69.

    Google Scholar 

  • Joo, S. (1998). Personal financial wellness and worker job productivity. Unpublished doctoral dissertation, Virginia Polytechnic Institute and State University, Blacksburg, VA.

    Google Scholar 

  • Joo, S., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25–50.

    CrossRef  Google Scholar 

  • Lown, J. M., & Ju, I. (1992). A model of credit use and financial satisfaction. Financial Counseling and Planning, 3, 105–123.

    Google Scholar 

  • Magrabi, F. M., Pennock, J. L., Poole, W. K., & Rachal, J. V. (1975). An index of economic welfare of rural families. Journal of Consumer Research, 2(3), 178–187.

    CrossRef  Google Scholar 

  • Mathus, I. (1989). Personal finance (2nd ed.). Cincinnati, OH: South-Western Publishing Co.

    Google Scholar 

  • Minnesota Extension Service. (1992). Specialist research report: Economic well-being of non-institutionalized elderly with functional limitations. Retrieved August 14, 2002, from http://www.cyfc.umn.edu/Documents/G/B/GB1013.html.

    Google Scholar 

  • Moon, M., & Juster, F. T. (1995). Economic status measures in the health and retirement study. Journal of Human Resources, 30(health and retirement study supplement), S138–S157.

    Google Scholar 

  • Porter, N. M. (1990). Testing a model of financial well-being. Unpublished doctoral dissertation, Virginia Polytechnic Institute and State University, Blacksburg, VA.

    Google Scholar 

  • Porter, N. M., & Garman, E. T. (1993). Testing a conceptual model of financial well-being. Financial Counseling and Planning, 4, 135–164.

    Google Scholar 

  • Radner, D. B. (1990). Assessing the economic status of the aged among nonaged using alternative income-wealth measures. Social Security Bulletin, 53(3), 2–14.

    PubMed  Google Scholar 

  • Radner, D. B. (1993). Economic well-being of the old: Family unit income and household wealth. Social Security Bulletin, 56(1), 3–19.

    PubMed  Google Scholar 

  • Sabelhaus, J., & Manchester, J. (1995). Baby boomers and their parents: How does their economic well-being compare in middle age? Journal of Human Resources, 30, 791–806.

    CrossRef  Google Scholar 

  • Smeeding, T., Torrey, B. B., & Rein, M. (1987). Comparative well-being of children and elderly. Contemporary Economic Policy, 5(2), 52–72.

    CrossRef  Google Scholar 

  • Strumpel, B. (Ed.). (1976). Economic means for human needs. Ann Arbor: MI: Institute for Social Research.

    Google Scholar 

  • Van der Gaag, J., & Smolensky, E. (1982). Consumer expenditures and the evaluation of levels of living. Review of Income and Wealth, 1, 17–27.

    CrossRef  Google Scholar 

  • van Praag, B. M. S., Frijters, P., Ferrer-i-Carbonell, A. (2000). A structural model of well-being. Tinbergen Institute Discussion Paper TI 2000-053/3. Retrieved August 12, 2002, from http://www.tinbergen.nl.

    Google Scholar 

  • Weinberg, D. H., Nelson, C. T., Roemer, M. I., & Welniak, E. J. (1999). Economic well-being in the United States: How much improvement—fifty years of U.S. income data from the current population survey: Alternatives, trends, and quality. American Economic Review, 89(2), 18–22.

    CrossRef  Google Scholar 

  • Weisbrod, B. A., & Hansen, W. L. (1968). An income-net worth approach to measuring economic welfare. The American Economic Review, 58, 1315–1329.

    Google Scholar 

  • Wilhelm, M. S., & Varcoe, K. (1991). Assessment of financial well-being: Impact of objective economic indicators and money attitudes on financial satisfaction and financial progress. Annual Proceedings of the Association for Financial Counseling and Planning Education, 184–202.

    Google Scholar 

  • Wilhelm, M. S., Varcoe, K., & Fridrich, A. H. (1993). Financial satisfaction and assessment of financial progress: Importance of money attitudes. Financial Counseling and Planning, 4, 181–198.

    Google Scholar 

  • Williams, F. L. (1993). Financial counseling: Low-income or limited-income families. In V. S. Fitzsimmons (Ed.), Economic changes: Challenges for financial counseling and planning professionals (pp. 121–145). Proceedings of the Association for Financial Counseling and Planning Education, San Antonio, TX.

    Google Scholar 

  • Winter, M., Morris, E. W., & Gutkowska, K. (1999). Constraints, domain conditions, and well-being: Evidence from Poland during the transition. Journal of Consumer Affairs, 33, 27–47.

    CrossRef  Google Scholar 

  • Zimmerman, S. L. (1995). Understanding family policy: Theories and applications (2nd ed.). Thousand Oaks, CA: Sage.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Financial Planning Standards Board of Korea, 17th FL., Seongji Bldg, Dohwa 2-dong, Mapo-gu, Seoul 121–743, Korea

    Sohyun Joo

Authors
  1. Sohyun Joo
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Rhode Island Transition Center, 2 Lower College Rd., Kingston, RI 02881, USA

    Jing Jian Xiao Ph.D.

Rights and permissions

Reprints and Permissions

Copyright information

© 2008 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Joo, S. (2008). Personal Financial Wellness. In: Xiao, J.J. (eds) Handbook of Consumer Finance Research. Springer, New York, NY. https://doi.org/10.1007/978-0-387-75734-6_2

Download citation