Effective finance to increase financial well‐being for low‐income families: Empirical examination and policy implications. Issue 4 (25th August 2022)

• Record Type: Journal Article
• Authors: Huang, Jin; Sherraden, Michael; Sherraden, Margaret S.; Johnson, Lissa
• Is Part Of: Journal of consumer affairs. Volume 56:Issue 4(2022)
• Page Start: 1638
• Page End: 1657
• Publication Date: 2022-08-25
• Subjects: effective finance -- financial access -- financial capability -- financial skills -- financial well‐being -- material hardship -- poverty; Consumer education -- Periodicals; Consumers -- Periodicals; 381.33
• DOI: 10.1111/joca.12484
• Languages: English
• ISSNs: 0022-0078

Abstract

Abstract: Effective finance is a finance system that assures individuals and families of having beneficial access to financial services and skills. It is a precondition for financial well‐being. Drawing upon a low‐income sample ( N = 1473) from the 2016 National Financial Well‐Being Survey, this study examines whether financial skills and financial access are associated with financial well‐being and material hardship. The results identify positive interactions between financial access and financial skills on financial well‐being. The findings point to effective finance policies that have the potential to reduce material hardship and support financial well‐being for low‐income families.