Determinants of financial worry |
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| Authors: | Frank M Magwegwe Maurice M MacDonald HanNa Lim Stuart J Heckman |
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| Institution: | 1. Gordon Institute of Business Science, University of Pretoria, Johannesburg, South Africa;2. Department of Personal Financial Planning, College of Health and Human Sciences, Kansas State University, Manhattan, Kansas, USA |
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| Abstract: | Grounded in the transactional stress-coping theory and the Tallis and Eysenck (1994) model of nonpathological worry, the present study sought to advance the conceptual and empirical understanding of financial worry (FW). We positioned objective financial stressors (OFS), subjective financial stressors (SFS), and coping resources as key variables in understanding the determinants of financial worry (FW). The cross-sectional data consisted of responses from a representative sample of 19,385 adults, aged 18 and older, drawn from a large U.S. survey. Hierarchical linear regression results revealed that OFS, SFS, household income, and financial capability (FC) are all key determinants of FW. Furthermore, the results revealed adverse effects of OFS and SFS on FW. These effects were moderated by household income, FC, age, and gender. Implications for future research, employers, practitioners, and policymakers are discussed. |
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| Keywords: | coping resources financial capability financial worry moderators objective and subjective financial stressors perceived threat |
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