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Keywords

Financial Self-Efficacy; Older Adults; PERMA Well Being; Positive Psychology; Psychosocial

Abstract

This study investigates the relationship between psychosocial characteristics and financial self-efficacy (FSE) within a sample of 9,187 U.S. individuals over age 50 from the Health and Retirement Study. Psychosocial factors were operationalized through the PERMA well-being construct from positive psychology: positive emotions, engagement, relationships, meaning, and accomplishment. Results of a second-order confirmatory factory analysis (CFA) within a structural equation modeling framework revealed that the PERMA construct was positively associated with FSE for the full sample, the spouse/partner sample, and the sample with children. Results also indicated that all individual PERMA elements were directly and positively associated with FSE except for engagement, which revealed a direct negative relationship. Researchers have found older adults’ FSE to be vulnerable to a sustained decline; this study builds upon the literature by providing insight into how the psychosocial environment might contribute to or mitigate this decline.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License

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