Determinants of Subjective Financial Well-Being Across Three Different Household Income Groups in Malaysia
Thoughts
Citing previous literature, explains financial stress is defined as ‘financial strains that occur when one is subjected to certain negative events such as changes to current financial position and facing an emergency that require a sum of money beyond the normal capacity of the individual.’ They highlight that financial stress is different from ‘financial distress, because financial stress relates to major financial shocks or changes in one’s life whereas financial distress is an inverse perspective of financial well-being.’
Connects with: @prawitz2006 @starrin2009 @voydanoff1990 @yates2007 @boss2001 @grable2011
Annotations
mahdzan2019 - p. 702
concept reflects the overall level of satisfaction with one’s current financial situatio
mahdzan2019 - p. 702
“ability to have control over one’s daily and monthly finances, the capacity to handle financial uncertainties, meet financial goals, and have the financial freedom to make choices that allow one to enjoy life
mahdzan2019 - p. 702
SFWB encapsulates not only the feelings of satisfaction over one’s present financial conditions, but also incorporates one’s outlook on their future financial situation
mahdzan2019 - p. 702
subjective measurement of one’s current and future financial situation, and defines the concept as “the perception of being able to sustain current and anticipated desired living standards and financial freedom”
mahdzan2019 - p. 703
Financial stress is defined as financial strains that occur when one is subjected to certain negative events such as changes to current financial position and facing an emergency that require a sum of money beyond the normal capacity of the individual (Voydanoff 1990; Kim et al. 2006)
mahdzan2019 - p. 703
Yates (2007) lamented that financial stress is a result of financial inadequacies to meet essential financial needs to maintain a certain standard of living
mahdzan2019 - p. 703
Other researchers posit that financial stress emanates from three primary sources, such as personal (e.g., injuries and illness), family (e.g., marriages and births) and shocks in financial situations (e.g., foreclosure, large decreases in savings, and legal problems) (Joo and Grable 2004; Prawitz et al. 2006).
mahdzan2019 - p. 703
The accumulation of financial stress, such as the increase in the level of debt or financial inadequacies, would plausibly escalate into a state of financial distress (Boss 2001), or inversely, low levels of SFWB.
Note: Dicotomização financial stress vs. financial well being
mahdzan2019 - p. 711
A CFA on SFWB, the dependent variable of the study, was run separately since this variable is measured using a 10-point scale while the other variables use a 5-Likert scale
mahdzan2019 - p. 711
The CFA using varimax rotation for SFWB suggest that the construct is unidimensional as all nine (9) items load strongly into a single dimension (factor loadings range between 0.751 and 0.853)
mahdzan2019 - p. 711
he Cronbach’s Alpha for SFWB is 0.927, while for the independent variables range between 0.744 and 0.863
mahdzan2019 - p. 711
The correlation results showed that the correlations for the five variables were below ± 0.6 and the results infer the non-existence of multicollinearity issue
mahdzan2019 - p. 715
The absolute coefficient value for financial stress was highest for the M40 group (β = − 0.847, p < 0.01) and lowest for the B40 group (β = − 0.585, p < 0.01). The latter results are rather surprising as it is expected that financial stress has the strongest impact on the low income group rather than the middle and high income groups.