A review of the theoretical foundations of financial well-being

Source: ResearchGate


The authors seek to elucidate the conceptualization of financial well-being and propose a theoretical framework for its understanding by examining and synthesizing its theoretical foundations. 

 

Despite its primarily individual focus, comprehending financial well-being necessitates contextualization within broader societal dimensions, given its profound societal implications and its intrinsic connection to socio-economic advancement and subjective well-being. 

 

Employing a qualitative-descriptive approach informed by empirical research and the insights of various scholars and institutions, this study seeks to consolidate the definition of financial well-being while concurrently exploring and comparing its diverse theoretical underpinnings.

Figure - Financial well-being and the prioritization of needs and wants. Source: Authors’ elaboration based on Xiao and Noring (1994)


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