Name: Charlie Wilmot
Live Poster Session: Zoom Link
Abstract: Financial wellbeing, encompassing financial security and freedom of choice, is crucial for individual and societal prosperity. Despite educational effort, a significant portion of the US population struggles financially. This study examines the association between financial behavior, classified as the choices and actions people make with their money (e.g. earning, spending, saving, budgeting, debt management, investing), and financial wellbeing. Existing research suggests that early exposure to financial hardship hinders financial capability, and that lower socioeconomic status translates to a lower financial wellbeing. Conversely, a sound financial background fosters financial wellbeing. Using data from the Consumer Financial Protection Bureau’s National Financial Well-Being Survey, the following analysis aims to 1) establish the link between specific financial behaviors and financial wellbeing and 2) establish the financial behavior that is most impactful on financial wellbeing. Ultimately, it was revealed that many financial behaviors affect financial wellbeing, but financial skill, classified as an individual’s ability to find, process, and act on financial information, most greatly affects financial wellbeing. Gender and Education were significant moderators, while age and race/ethnicity were not, as they did not significantly alter the relationship between financial wellbeing and financial skill.
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