How closely related are financial satisfaction and subjective well-being? Systematic review and meta-analysis

TY - JOUR

T1 - How closely related are financial satisfaction and subjective well-being? Systematic review and meta-analysis

AU - Ngamaba, Kayonda Hubert

AU - Armitage, Christopher J

AU - Panagioti, Maria

AU - Hodkinson, Alex

N1 - © 2020 Published by Elsevier Inc. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy.

PY - 2020/4/1

Y1 - 2020/4/1

N2 - Financial satisfaction is considered one of the determinants of Subjective well-being (SWB), yet the assumption that financial satisfaction is closely associated with SWB has not been tested across nations. This first systematic review and meta-analysis examined the association between financial satisfaction and SWB and to test whether any association is affected by key operational and methodological factors. Following Cochrane and PRISMA guidelines, a systematic (Web of Science, Medline, Embase, PsycINFO and Google scholar) search was conducted (January 1980–August 2019). Meta-analyses, meta-regressions and subgroup analysis using random-effects models were performed. 24 studies were included in the meta-analysis and the overall association between financial satisfaction and SWB was medium, significant and positive (pooled r = 0.41, 95% CI = 0.38–0.44; Q = 7108, I2 = 99.7%, p < 0.001). Univariate meta-regressions showed that studies conducted in countries that were more developed (B = 0.14, 95% CI: 0.05, 0.24, I2 = 79%, R2 = 51%), and had used multiple items (B = 0.12, 95% CI: 0.01, 0.18, I2 = 72%, R2 = 30%) instead of single were significantly associated with better financial satisfaction and greater SWB. Our findings highlight the need for designing better tools to measure these core societal concepts; to improve financial satisfaction and hence SWB across the globe.

AB - Financial satisfaction is considered one of the determinants of Subjective well-being (SWB), yet the assumption that financial satisfaction is closely associated with SWB has not been tested across nations. This first systematic review and meta-analysis examined the association between financial satisfaction and SWB and to test whether any association is affected by key operational and methodological factors. Following Cochrane and PRISMA guidelines, a systematic (Web of Science, Medline, Embase, PsycINFO and Google scholar) search was conducted (January 1980–August 2019). Meta-analyses, meta-regressions and subgroup analysis using random-effects models were performed. 24 studies were included in the meta-analysis and the overall association between financial satisfaction and SWB was medium, significant and positive (pooled r = 0.41, 95% CI = 0.38–0.44; Q = 7108, I2 = 99.7%, p < 0.001). Univariate meta-regressions showed that studies conducted in countries that were more developed (B = 0.14, 95% CI: 0.05, 0.24, I2 = 79%, R2 = 51%), and had used multiple items (B = 0.12, 95% CI: 0.01, 0.18, I2 = 72%, R2 = 30%) instead of single were significantly associated with better financial satisfaction and greater SWB. Our findings highlight the need for designing better tools to measure these core societal concepts; to improve financial satisfaction and hence SWB across the globe.

KW - Happiness, Life satisfaction, Subjective well-being, Financial satisfaction, Income, Quality of life.

U2 - 10.1016/j.socec.2020.101522

DO - 10.1016/j.socec.2020.101522

M3 - Article

SN - 2214-8043

VL - 85

JO - Journal of Behavioral and Experimental Economics

JF - Journal of Behavioral and Experimental Economics

M1 - 101522

ER -