Disentangling the financial well-being effect on overall well-being: a contingent perspective

Abstract

In the contemporary milieu, individual financial well-being is increasingly pivotal to overall equilibrium and overall well-being. The aim of this research is to delineate the factors that impact financial well-being and to examine the role of financial well-being as an intermediary between financial self-efficacy, consumer spending self-control, financial literacy, and overall well-being. Concurrently, the study endeavors to scrutinize the moderating role of materialism within this dynamic. To this end, the author conducted an online survey with 322 participants utilizing a convenience sampling method and analyzed the data through a linear structural modeling approach. The findings indicate that financial well-being not only exerts a direct influence on happiness but also serves as a mediating force in strengthening these links. Moreover, materialism has been identified as having a regulatory impact, amplifying or attenuating the strength of the relationship between financial well-being and happiness. These insights offer significant theoretical and practical implications, providing individuals and organizations with a comprehensive perspective on how financial management affects life quality and the role of materialistic viewpoints in this interrelation.