Building Financial Satisfaction

This paper aims to contribute further research on the conceptualization of individual financial satisfaction as a particular domain of satisfaction with life as a whole. Based on the 2003 Survey on Living Conditions and Poverty for Andalucía (Spain) and using a self-reported measure of welfare, ordered probit models are used to analyze the extent to which individual financial satisfaction can be solely explained by income in absolute terms, or alternatively, by taking into account the importance of relative income in its two dimensions: (1) personal aspirations as individual’s adaptation to previous and future income levels (intra-individual comparisons), and (2) social comparisons as individual’s concern for her peer’s income (inter-personal dependency).     

Comparing Financial Socialization and Formal Financial Education: Building Financial Capability

Social Indicators Research - Many individuals learn financial knowledge and skills in school (namely formal financial education) and through friends and family (e.g., family financial...     

Measuring Financial Capability and its Determinants Using Survey Data

Financial capability, or people’s ability to manage and take control of their finances, is receiving increasing interest among policy makers as more people find themselves in difficult financial situations during the current economic downturn. We tackle the problem of how to measure financial capability—with a specific focus on making ends meet and money management—using data from a general household survey (the British Household Panel Survey), and then identify its key determinants using panel data models. This is important if appropriate policies and programmes are to be targeted at those most in need. We find the lowest financial capability among young unemployed single adults living in households with other unrelated non-working adults. In contrast, older men and women in full-time work with an employed spouse have the most financial capability.     

Income and Financial Satisfaction among Older Adults in the United States

Using data from the General Social Surveys,this study compares the effects of differentincome variables on financial satisfactionamong people age 65 and above in the UnitedStates. Results suggest that simply usinghousehold income as a variable without anyadjustment does not capture the real effect ofincome on financial satisfaction. Incomeequivalence scales and per-capita income arebetter income predictors of financialsatisfaction than family income. Given thefact that it is not uncommon in financialsatisfaction as well as subjective well-beingresearch to use the family income variablewithout adjustment, findings regarding theeffect of income from those studies should beinterpreted with caution.     

Financial Satisfaction and (in)formal Sector in a Transition Country

This paper examines the relationship between working in the formal or informal sector and self-reported individual financial satisfaction in a country in transition. It does so by allowing for individual heterogeneity in terms of perceived financial insecurity and tax morale. The empirical analysis uses a dataset for Albania, a country in transition. The method applied is the ‘self-administered questionnaire’, which combines personal contacts with written questionnaire. The results indicate that, for most individuals, working in the informal sector has negative effects on their self reported financial satisfaction. For some individuals, however, this effect is positive. The characteristic defining these two groups of individuals is their attitude towards the perceived financial insecurity related to not paying taxes. These findings have important implications, in particular for transition countries with large informal sectors. Given the involuntary participation in the informal sector in these countries, the majority of individuals working in this sector will remain financially dissatisfied as long as they have no other social safety net.     

Acting for Happiness: Financial Behavior and Life Satisfaction of College Students

Recent research on well-being suggests that domain-specific behaviors contribute to domain-specific satisfactions, which in turn contribute to an individual’s overall satisfaction with life. Our study is an attempt to add to the literature by observing these phenomena from a financial perspective. Using data collected from a sample of undergraduate students at a major state university in the U.S. and employing structural equation modeling, we have found evidence suggesting that positive financial behaviors contribute to financial satisfaction and financial satisfaction in turn contributes to life satisfaction. In addition, positive financial behaviors contribute to life satisfaction through two more mediating variables: academic performance and academic satisfaction.     

Money Buys Financial Security and Psychological Need Satisfaction: Testing Need Theory in Affluence

The most prominent theory to explain the curvilinear relationship between income and subjective well-being (SWB) is need theory, which proposes that increased income and wealth can lead to increased well-being in poverty because money is used to satisfy basic physiological needs. The present study tests the tenets of need theory by proposing that money can buy happiness beyond poverty if the money satisfies higher-order needs. Findings indicate that in older adults (n = 1,284), as economic standing rises, so do individual perceptions of financial security (a safety need), which in turn increases overall life satisfaction. Further, a path model tested the degree to which financial security and psychological need satisfaction mediated the path from economic standing to life satisfaction and demonstrated the complete mediation through higher-order needs—there was a 66% reduction in the direct link through financial security and a 34% reduction through psychological need satisfaction. Discussion focuses on how these mediation and path models extend need theory.     

Evaluating the Link Between Perceived Income Adequacy and Financial Satisfaction: A Resource Deficit Hypothesis Approach

Data from an economically and racially diverse sample (N = 258) was used to determine (a) if an association between objectively measured income and perceived income adequacy exists, (b) how well individuals assess the adequacy of their income, and (c) if a bias exists, can these estimates be used to describe a person’s overall level of financial satisfaction? Duesenberry’s (Income, saving, and the theory of consumer behavior. Harvard University Press, Cambridge, 1949) relative income hypothesis and Kyrk’s (The family in the American economy. University of Chicago Press, Chicago, 1953) resource deficit hypothesis were adopted for use as the conceptual framework for this study. A positive but modest association between objective and perceived income adequacy was noted. It was also found that individuals do not do a particularly good job of accurately assessing their income adequacy. Finally, perceived income adequacy estimation bias was found to be associated with financial satisfaction. Those who perceived their income to be deficient were less satisfied financially. Policy and practitioner implications from the study are discussed as a means for improving financial satisfaction at the individual and household level.     

Satisfaction and happiness

I review the recent literature on satisfaction and happiness, identify some plausible next steps to take at the frontiers of the research field and offer some suggestions to facilitate those steps. Using partial correlation techniques, substantial levels of covariation are found among the variables that are used in predictions of satisfaction and happiness with life as a whole from satisfaction with specific domains (e.g. family life, health). Using path analysis, confirmation is found in a dozen domains for a model which has satisfaction as a function of a perceived goal-achievement gap, and the latter as a function of comparisons with previous best experience and the status of average folks. Using discriminant analysis, satisfaction with family life is found to be a powerful and predominant discriminator among three groups, identified as Frustrated (dissatisfied and unhappy), Resigned (satisfied and unhappy) and Achievers (satisfied and happy).     

Aging and Life Satisfaction

This paper was intended to examine how major life events – suchas retirement, deterioration of health, and loss of spouse –experienced in the aging process may affect the elderly's lifesatisfaction. An explanation was also proposed to the change inthe effects of age groups on life satisfaction because of thecontrol of the aging effect. A simple form of a longitudinalsurvey conducted in Taiwan in 1989 and 1993 was used for theempirical test. It was found that life satisfaction among theelderly decreased as age increased beyond 65 years of age. Itwas also found that social demographic variables, an incomedecrease, living arrangement, and level of activity participationhave a profound impact on life satisfaction of Taiwan's elderly. When the correlates were controlled, the coefficients for agegroups greater than 70 turned positive. This change could beexplained by two types of cohort experience: (1) from rough toprosperous life experience and (2) cohort norm on lifeexpectancy.     

Home Ownership and Job Satisfaction

This paper investigates the link between job satisfaction and home ownership. We explicitly focus on the effect of a transition from non-ownership to ownership on the self-reported job satisfaction scores. In other words, we concentrate on the change in job satisfaction response for individuals observed right before and after the transition. Utilizing the panel feature of the British Household Panel Survey, we find that transition to ownership reduces job satisfaction within a year following the purchase—controlling for observed variation and unobserved heterogeneity. The reduction in job satisfaction is sharper when the purchase is financed through a mortgage. We also test if this pattern persists over years. We show that the initial reduction in job satisfaction is more than doubled within 3 years after the transition for both categories of ownership. We conclude that home ownership may be a constraint for the career prospects of the employed workers, since it reduces mobility and forces them to become more dependent on the local labor market conditions. These concerns are deeper in case of a debt-financed ownership.     

Satisfaction and Tourism Expenditure Behaviour

In the literature, the quantification of the effect of satisfaction on tourists’ expenditure behaviour has not been extensively studied. This research aims to fill in this gap, providing additional information about this crucial relation by analysing it from a microdata perspective. In particular, the Fuzzy Double-Hurdle model, a new model which combines the well-known Double-Hurdle model and the fuzzy set theory, is suggested and presented, both technically and by means of a real case study. The proposed model gathers the advantages of the Double-Hurdle model and the fuzzy set theory together producing a suitable model for the analysis of censored observations in presence of imprecise data. Specifically, the Double-Hurdle model allows to efficiently estimate the average values of a non-negative, non-normally distributed variable characterised by high frequency of zero values, as tourists’ expenditure can be, considering the two-stages nature of the decision process. On the other end, the inclusion of the fuzzy set theory in the regression model allows to cope with the imprecision of both collected information (i.e. levels of satisfaction) and kind of measurement used (i.e. Liker-type scale). The results will help tourism managers to more accurately evaluate the efficacy of their policies and marketing strategies in enhancing tourists’ satisfaction and, consequently, in increasing the level of spending at the destination.

     

Sustainable Consumption and Life Satisfaction

The purpose of this study was to examine the association between sustainable consumption and life satisfaction. One aspect of sustainable consumption focused on in this study is the environment friendly purchase or green purchase. Using data collected from consumers in 14 cities in China, we found that consumers who reported green purchase intention and behavior had higher scores in life satisfaction compared to other consumers after controlling for gender, age, education, and family income. The findings add evidence to the literature that suggests happiness is associated with prosocial spending (Dunn et al., Science 319:1687–1688 in 2008).     

Healthy Days,Health Satisfaction and Satisfaction with the Overall Quality of Life

In this note we report results of 6 surveysusing the United States Centers for DiseaseControl and Prevention indicators of healthstatus, taken from the Behavioral Risk FactorSurveillance System. Generally speaking, wefound that the CDC healthy days variables couldplay a useful role in survey research aimed atassessing the impact of measured health statuson people's satisfaction with their own healthand with the overall quality of their lives.More precisely, using stepwise regressions wefound: (1) The three healthy days variablesexplained from 16 to 27 percent of the variancein General Health scores. The limited activitydays variable remained as a significantpredictor in only one of the six regressionsand the not good physical health days variablewas most influential in every sample. (2) Thethree healthy days variables explained from 19to 32 percent of the variance in healthsatisfaction scores, and the not good physicalhealth days variable was again most influentialin every sample. (3) The three healthy daysvariables explained from 12 to 39 percent ofthe variance in quality-of-life satisfactionscores, with the not good mental healthvariable most influential in every sample. (4)The four CDC variables together explained from40 to 55 percent of the variance in healthsatisfaction scores, with the General Healthvariable always dominating the set ofpredictors by a fairly wide margin. (5) Thefour CDC variables together explained from 17to 28 percent of the variance inquality-of-life satisfaction scores, with theGeneral Health variable most influential inthree samples and the not good mental healthvariable most influential in the other three.(6) When the four CDC variables plus the healthsatisfaction variable were used as potentialpredictors, we were able to explain from 29 to40 percent of the variance in quality-of-lifesatisfaction scores. In every sample, theGeneral Health and limited activity daysvariables had no significant impact. (7) Usingstructural equation modeling, we found GeneralHealth does not have a direct effect onsatisfaction with the overall quality of lifebut rather only an indirect effect throughhealth satisfaction. The General Health, notgood physical health, and not good mentalhealth days variables account for 51% of thevariation in health satisfaction, and healthsatisfaction, not good physical health and notgood mental health days variables account for30% of the variation in satisfaction with theoverall quality of life.     

Life Satisfaction and Happiness in Turkey

This research aims to investigate life satisfaction and happiness in Turkey. It extends the previous researches on subjective well-being (SWB) for Turkey by considering both happiness and life satisfaction. The previous researches for Turkey are local studies, and their findings cannot be generalized to the population of Turkish society. Given these facts, the factors that shape individual happiness and life satisfaction amongst Turkish people are determined using a representative survey of sociocultural and political change, World Values Survey (WVS). Some results obtained in this study are similar to typical findings such as a negative age effect, positive influences of income and health status, and a negative effect of unemployment. Contrary to the expectations, middle education has a negative direct effect on life satisfaction among females, and the upper education level is insignificant in the life satisfaction model. By comparing the correlates of happiness and life satisfaction across different years, this research aims to provide insights for policy makers and professionals to improve the perceived lives of Turkish people.

Happiness and Satisfaction with Work Commute

Research suggests that for many people happiness is being able to make the routines of everyday life work, such that positive feelings dominate over negative feelings resulting from daily hassles. In line with this, a survey of work commuters in the three largest urban areas of Sweden show that satisfaction with the work commute contributes to overall happiness. It is also found that feelings during the commutes are predominantly positive or neutral. Possible explanatory factors include desirable physical exercise from walking and biking, as well as that short commutes provide a buffer between the work and private spheres. For longer work commutes, social and entertainment activities either increase positive affects or counteract stress and boredom. Satisfaction with being employed in a recession may also spill over to positive experiences of work commutes.     

The Role of Domain Satisfaction in Explaining the Paradoxical Association Between Life Satisfaction and Age

Although aging is associated with declines in many life domains, overall life satisfaction does not appear to decline sharply with age. One explanation for this paradoxical finding is that several life domains improve with age such that increases in certain domains balance the decreases in others. Because different issues are problematic at different life stages, it is likely that specific domains display different life trajectories compared to overall life satisfaction. The observed pattern for overall life satisfaction is likely due to a bottom-up approach. Life and domain satisfaction data from 8?years of the British Household Panel Study were analyzed to evaluate this hypothesis. Results indicated that satisfaction with some life domains increased after middle age (e.g. social life), whereas satisfaction with other life domains decreased (e.g. health). Additionally, results illustrated that although domain satisfaction scores demonstrate distinct trajectories, the aggregate of these distinct domains resembled the overall life satisfaction trajectory. These findings have implications for top-down and bottom-up models of life satisfaction.     

An Analysis of the Levels of Job Satisfaction and Life Satisfaction of the Academic Staff

Job satisfaction is generally related with life satisfaction and can directly affect social, physical and mental health of individuals. This study was investigated to determine whether the levels of job satisfaction and life satisfaction of academicians have significantly differentiated under demographic variables and to enlighten the correlation among them. The samples of the study involve 186 academic personnel who work in the Faculty of Science and Art (122) and in the Faculty of Engineering and Architecture (64) in Eskisehir Osmangazi University. While analysing the data, t test, analysis of variance and regression analysis were used for SPSS 10.0. There was significant difference between job and life satisfaction levels of the academicians depending on the variables like the faculties that academic personnel working at, their titles, educational backgrounds, marital statuses, periods of duty, ages and genders. The results and their implications have been discussed.     

Financial Literacy,Portfolio Choice and Financial Well-Being

The increased variability in family types and forms of relationships is the most apparent outcome of family change in recent decades in Europe. One relationship that has emerged and recently become more visible, both in society and in science, is a ‘nonresidential partnership’ termed living apart together (LAT). We explore the meaning and incidence of LAT partnerships across Europe using a life course perspective. Cluster analysis using five cluster variables (living independently from parents, never having lived as a couple before, the intention to cohabit in the future, the age of the respondents, and the duration of the relationship) was carried out on data from the Generations and Gender Survey for ten countries. Four types of non-residential partnership across Europe are revealed. From a measurement perspective, a simplified model provides empirical evidence that three indicators are sufficient to detect and situate LAT relationships on a partnership continuum: (1) having a nonresidential partner, (2) the age of the respondent, and (3) the duration of the LAT relationship. Classifying relationships with a non-resident partner can be carried out efficiently if information about the age of the respondent and the duration of the current LAT relationship is available.