The role of impulsivity and financial satisfaction in a moderated mediation model of consumer financial resilience and life satisfaction
International Journal of Bank Marketing
ISSN: 0265-2323
Article publication date: 15 March 2022
Issue publication date: 25 April 2022
Abstract
Purpose
This paper explores the direct and indirect associations between financial resilience and life satisfaction, using the moderation of non-impulsive behavior and mediation of financial satisfaction.
Design/methodology/approach
The authors analyze the Australian household dataset, named the Household, Income and Labour Dynamics in Australia (HILDA) Survey, to meet the objectives of this paper. Furthermore, the authors use the PROCESS Models 4 and 7 to test the mediation and the combined moderated mediation relationships, respectively.
Findings
The authors find the complete mediation of the relationship between financial resilience and life satisfaction by financial satisfaction. Also, this study finds that both financial resilience and non-impulsive behavior positively contribute to financial satisfaction, which is positively associated with life satisfaction.
Practical implications
This research supports the need for consumers to build emergency funds as financial resilience is related to consumer well-being. This research also recommends that impulsive behavior should be addressed by the personal finance curriculum and financial advisors.
Originality/value
This research contributes by showing that financial satisfaction is an important predictor of consumers’ well-being. The ability to access financial resources, which increases for non-impulsive consumers, is associated with increased life satisfaction but only via financial satisfaction.
Keywords
Acknowledgements
This paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and funded by the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the author and should not be attributed to either FaHCSIA or the Melbourne Institute.
Citation
Tahir, M.S., Shahid, A.U. and Richards, D.W. (2022), "The role of impulsivity and financial satisfaction in a moderated mediation model of consumer financial resilience and life satisfaction", International Journal of Bank Marketing, Vol. 40 No. 4, pp. 773-790. https://doi.org/10.1108/IJBM-09-2021-0407
Publisher
:Emerald Publishing Limited
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