The Relationship Between Personal Financial Wellness and Financial Wellbeing: A Structural Equation Modelling Approach.
We examined the construct of financial wellness
and its relationship to personal wellbeing, with a focus on the
role of financial literacy. Gender comparisons are made
using a structural equation modeling analysis including
personal wellbeing, financial satisfaction, financial status,
financial behavior, financial attitude, and financial knowledge.
Males ranked higher in financial satisfaction and
financial knowledge whereas females ranked higher in personal
wellbeing. Joo’s (2008) concept of financial wellness
as multidimensional is supported though the result is
improved when a causal model of sub-components is estimated.
The relationship of all variables to personal wellbeing
is mediated by financial satisfaction, with gender differences:
In females the main source of financial satisfaction is
financial status whereas in males it is financial knowledge.