Perceived Financial Well-Being as Antecedent of Psychological Well-Being: Evidence from Brazil
(A2022-106211)

AUTHORS

Mateus Ponchio, Fundacao Getulio Vargas / Escola de Administracao de Empresas de Sao Paulo; Simoni Rohden, Portuguese Institute of Marketing Management - IPAM; Frederike Mette, PUCRS

ABSTRACT

This study investigates how the relationship between perceived financial well-being and psychological well-being is influenced by income loss in the context of the adverse economic and social conditions resulting from the Covid-19 pandemic. A survey conducted with 994 Brazilian respondents allowed the research hypotheses to be tested by means of multigroup structural equation modelling. Our findings show that, after controlling for gender, age, and income, current money management stress and expected future financial security (the present and future dimensions of perceived financial well-being, respectively) are statistically significant to explain psychological well-being. Managerial and societal implications include the provision of knowledge that may allow financial education programmes and public policies aimed at reducing the negative impact of the perceived financial strain on well-being to be better targeted.