Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events

Sophie von Stumm; Mark Fenton O'Creevy; Adrian Furnham

doi:10.1016/j.paid.2012.09.019

Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events

Sophie von Stumm^*, Mark Fenton O'Creevy, Adrian Furnham

^*Corresponding author for this work

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Research output: Contribution to journal › Article › peer-review

Abstract

The risk of experiencing adverse financial events (e.g. bankruptcy) depends on the world economy and on individual differences in financial and psychological variables. Analysing data from 109,472 British survey respondents, this study reports the risks associated with financial capabilities, money attitudes, and socio-economic status for suffering negative financial outcomes. The results show that (1) socio-economic status is associated with financial capabilities but not with money attitudes; (2) money attitudes and financial capabilities are largely independent; (3) money attitudes and financial capabilities each contribute independently to the risk of experiencing adverse financial outcomes, even after adjusting for socio-economic status; and (4) financial capabilities are greater risk factors of adverse financial outcomes than money attitudes; the latter, however, are likely to be promising targets for interventions.

Original language	English
Pages (from-to)	344-349
Number of pages	6
Journal	Personality and Individual Differences
Volume	54
Issue number	3
DOIs	https://doi.org/10.1016/j.paid.2012.09.019
Publication status	Published - 1 Feb 2013

Keywords

Adverse financial events
Financial capability
Money attitudes
Socio-economic status

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10.1016/j.paid.2012.09.019

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title = "Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events",

abstract = "The risk of experiencing adverse financial events (e.g. bankruptcy) depends on the world economy and on individual differences in financial and psychological variables. Analysing data from 109,472 British survey respondents, this study reports the risks associated with financial capabilities, money attitudes, and socio-economic status for suffering negative financial outcomes. The results show that (1) socio-economic status is associated with financial capabilities but not with money attitudes; (2) money attitudes and financial capabilities are largely independent; (3) money attitudes and financial capabilities each contribute independently to the risk of experiencing adverse financial outcomes, even after adjusting for socio-economic status; and (4) financial capabilities are greater risk factors of adverse financial outcomes than money attitudes; the latter, however, are likely to be promising targets for interventions.",

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AU - Furnham, Adrian

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AB - The risk of experiencing adverse financial events (e.g. bankruptcy) depends on the world economy and on individual differences in financial and psychological variables. Analysing data from 109,472 British survey respondents, this study reports the risks associated with financial capabilities, money attitudes, and socio-economic status for suffering negative financial outcomes. The results show that (1) socio-economic status is associated with financial capabilities but not with money attitudes; (2) money attitudes and financial capabilities are largely independent; (3) money attitudes and financial capabilities each contribute independently to the risk of experiencing adverse financial outcomes, even after adjusting for socio-economic status; and (4) financial capabilities are greater risk factors of adverse financial outcomes than money attitudes; the latter, however, are likely to be promising targets for interventions.

KW - Adverse financial events

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KW - Money attitudes

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Financial capability, money attitudes and socioeconomic status: Risks for experiencing adverse financial events

Abstract

Keywords

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