As the importance of financial health of individuals and families continues to grow, people often use the term “financial wellness” to mean the level of a person’s financial health. Financial wellness is a comprehensive, multidimensional concept incorporating financial satisfaction, objective status of financial situation, financial attitudes, and behavior that cannot be assessed through one measure. This chapter discusses the concept and measurement of personal financial wellness and presents “Financial Wellness Diagram.” Future research directions are also discussed.


Objective Status Financial Wellness Financial Satisfaction Social Indicator Research Money Income 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Back, E., & DeVaney, S. A. (2004). Assessing the baby boomers’ financial wellness using financial ratios and a subjective measure. Family and Consumer Sciences Research Journal, 32, 321–348.CrossRefGoogle Scholar
  2. Bailey, A. W. (1987). Social and economic factors affecting the financial well-being of families. Journal of Home Economics, Summer, 14–18.Google Scholar
  3. Blau, F. D. (1998). Trends in the well-being of American women, 1970–1995. Journal of Economic Literature, 36(1), 112–165.Google Scholar
  4. Blinder, A. S., Kristol, I., & Cohen, W. J. (1980). The level and distribution of economic well-being. In M. Feldstein (Ed.), The American economy in transition (pp. 415–479). Chicago: University of Chicago Press.Google Scholar
  5. Breen, R. F. (1991). The financially mature: What they want and how to help them get it. Insurance Sales, 134(9), 8–10.Google Scholar
  6. Cantril, H. (1965). The pattern of human concerns. New Brunswick, NJ: Rutgers University Press.Google Scholar
  7. Cutler, N. E. (1995, January). Three myths of risk-tolerance: What clients are not telling you. Journal of the American Society of CLU & ChFC, 49, 33–37.Google Scholar
  8. Davis, E. P., & Schumm, W. R. (1987). Family financial satisfaction: The impact of reference point. Home Economics Research Journal, 14, 123–131.Google Scholar
  9. DeVaney, S. A. (1993). Change in household financial ratios between 1983 and 1986: Were American households improving their financial status? Financial Counseling and Planning, 4, 31–46.Google Scholar
  10. DeVaney, S. A. (1994). The usefulness of financial ratios as predictors of household insolvency: Two perspectives. Financial Counseling and Planning, 5, 5–24.Google Scholar
  11. DeVaney, S. A., & Lytton, R. T. (1995). Household insolvency: A review of household debt repayment, delinquency and bankruptcy. Financial Services Review, 4, 137–156.CrossRefGoogle Scholar
  12. Dickinson, A. (1996). The financial well-being of women and the family. The American Journal of Family Therapy, 24(1), 65–73.CrossRefGoogle Scholar
  13. Diener, E., Suh, E., & Osihi, S. (1998). Recent studies on subjective well-being. Indian Journal of Clinical Psychology, 24, 25–41.Google Scholar
  14. Fergusson, D. M., Horwood, L. J., & Beautrais, A. L. (1981). The measurement of family material well-being. Journal of Marriage and the Family, 43, 715–725.CrossRefGoogle Scholar
  15. Fletcher, C., & Lorenz, F. (1985) Social structural influences on the relationship between objective and subjective indicators of economic well-being. Social Indicators Research, 16, 333–345.CrossRefGoogle Scholar
  16. Garman, E. T., & Forgue, R. E. (2006). Personal finance (7th ed.). Boston: Houghton Mifflin Co.Google Scholar
  17. George, L. K. (1992). Economic status and subjective well-being: A review of the literature and an agenda for future research. In N. E. Cutler, D. W. Gregg, & M. P. Lawton (Eds.), Aging, money, and life satisfaction: Aspects of financial gerontology (pp. 69–99). New York: Springer.Google Scholar
  18. Godwin, D. D. (1994). Antecedents and consequences of newlyweds’ cash flow management. Financial Counseling and Planning, 5, 161–190.Google Scholar
  19. Greenley, J. R., Greenberg, J. S., & Brown, R. (1997). Measuring quality of life: A new and practical survey instrument. Social Work, 42, 244–254.PubMedGoogle Scholar
  20. Greninger, S. A., Hampton, V. L., Kitt, K. A., & Achacoso, J. A. (1996). Ratios and benchmarks for measuring the financial well-being of families and individuals. Financial Services Review, 5(1), 57–70.CrossRefGoogle Scholar
  21. Hansen, J. C., Rossberg, R. H., & Cramer, S. H. (1994). Counseling: Theory and practice. Boston: Allyn and Bacon.Google Scholar
  22. Haveman, R., & Wolfe, B. (1990). The economic well-being of the disabled. Journal of Human Resources, 25(1), 32–54.CrossRefGoogle Scholar
  23. Hayhoe, C. R. (1990). Theoretical model of perceived economic well-being. Annual Proceedings of the Association for Financial Counseling and Planning Education, 116–141.Google Scholar
  24. Hayhoe, C. R., & Wilhelm, M. S. (1998). Modeling perceived economic well-being in a family setting: A gender perspective. Financial Counseling and Planning, 9(1), 21–34.Google Scholar
  25. Headey, B. (1993). An economic model of subjective well-being: Integrating economic and psychological theories. Social Indicators Research, 28, 97–116.CrossRefGoogle Scholar
  26. Hira, T. K., & Mugenda, O. M. (1999). The relationships between self-worth and financial beliefs, behavior, and satisfaction. Journal of Family and Consumer Sciences, 91(4), 76–82.Google Scholar
  27. Jeries, N., & Allen, C. M. (1986). Satisfaction/dissatisfaction with financial management among married students. Proceedings of American Council on Consumer Interests Annual Conference, 63–69.Google Scholar
  28. Joo, S. (1998). Personal financial wellness and worker job productivity. Unpublished doctoral dissertation, Virginia Polytechnic Institute and State University, Blacksburg, VA.Google Scholar
  29. Joo, S., & Grable, J. E. (2004). An exploratory framework of the determinants of financial satisfaction. Journal of Family and Economic Issues, 25(1), 25–50.CrossRefGoogle Scholar
  30. Lown, J. M., & Ju, I. (1992). A model of credit use and financial satisfaction. Financial Counseling and Planning, 3, 105–123.Google Scholar
  31. Magrabi, F. M., Pennock, J. L., Poole, W. K., & Rachal, J. V. (1975). An index of economic welfare of rural families. Journal of Consumer Research, 2(3), 178–187.CrossRefGoogle Scholar
  32. Mathus, I. (1989). Personal finance (2nd ed.). Cincinnati, OH: South-Western Publishing Co.Google Scholar
  33. Minnesota Extension Service. (1992). Specialist research report: Economic well-being of non-institutionalized elderly with functional limitations. Retrieved August 14, 2002, from http://www.cyfc.umn.edu/Documents/G/B/GB1013.html.Google Scholar
  34. Moon, M., & Juster, F. T. (1995). Economic status measures in the health and retirement study. Journal of Human Resources, 30(health and retirement study supplement), S138–S157.Google Scholar
  35. Porter, N. M. (1990). Testing a model of financial well-being. Unpublished doctoral dissertation, Virginia Polytechnic Institute and State University, Blacksburg, VA.Google Scholar
  36. Porter, N. M., & Garman, E. T. (1993). Testing a conceptual model of financial well-being. Financial Counseling and Planning, 4, 135–164.Google Scholar
  37. Radner, D. B. (1990). Assessing the economic status of the aged among nonaged using alternative income-wealth measures. Social Security Bulletin, 53(3), 2–14.PubMedGoogle Scholar
  38. Radner, D. B. (1993). Economic well-being of the old: Family unit income and household wealth. Social Security Bulletin, 56(1), 3–19.PubMedGoogle Scholar
  39. Sabelhaus, J., & Manchester, J. (1995). Baby boomers and their parents: How does their economic well-being compare in middle age? Journal of Human Resources, 30, 791–806.CrossRefGoogle Scholar
  40. Smeeding, T., Torrey, B. B., & Rein, M. (1987). Comparative well-being of children and elderly. Contemporary Economic Policy, 5(2), 52–72.CrossRefGoogle Scholar
  41. Strumpel, B. (Ed.). (1976). Economic means for human needs. Ann Arbor: MI: Institute for Social Research.Google Scholar
  42. Van der Gaag, J., & Smolensky, E. (1982). Consumer expenditures and the evaluation of levels of living. Review of Income and Wealth, 1, 17–27.CrossRefGoogle Scholar
  43. van Praag, B. M. S., Frijters, P., Ferrer-i-Carbonell, A. (2000). A structural model of well-being. Tinbergen Institute Discussion Paper TI 2000-053/3. Retrieved August 12, 2002, from http://www.tinbergen.nl.Google Scholar
  44. Weinberg, D. H., Nelson, C. T., Roemer, M. I., & Welniak, E. J. (1999). Economic well-being in the United States: How much improvement—fifty years of U.S. income data from the current population survey: Alternatives, trends, and quality. American Economic Review, 89(2), 18–22.CrossRefGoogle Scholar
  45. Weisbrod, B. A., & Hansen, W. L. (1968). An income-net worth approach to measuring economic welfare. The American Economic Review, 58, 1315–1329.Google Scholar
  46. Wilhelm, M. S., & Varcoe, K. (1991). Assessment of financial well-being: Impact of objective economic indicators and money attitudes on financial satisfaction and financial progress. Annual Proceedings of the Association for Financial Counseling and Planning Education, 184–202.Google Scholar
  47. Wilhelm, M. S., Varcoe, K., & Fridrich, A. H. (1993). Financial satisfaction and assessment of financial progress: Importance of money attitudes. Financial Counseling and Planning, 4, 181–198.Google Scholar
  48. Williams, F. L. (1993). Financial counseling: Low-income or limited-income families. In V. S. Fitzsimmons (Ed.), Economic changes: Challenges for financial counseling and planning professionals (pp. 121–145). Proceedings of the Association for Financial Counseling and Planning Education, San Antonio, TX.Google Scholar
  49. Winter, M., Morris, E. W., & Gutkowska, K. (1999). Constraints, domain conditions, and well-being: Evidence from Poland during the transition. Journal of Consumer Affairs, 33, 27–47.CrossRefGoogle Scholar
  50. Zimmerman, S. L. (1995). Understanding family policy: Theories and applications (2nd ed.). Thousand Oaks, CA: Sage.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Sohyun Joo
    • 1
  1. 1.Financial Planning Standards Board of KoreaMapo-guKorea

Personalised recommendations