We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Financial Literacy Is Better Than Income to Predict Happiness.
- Authors
Huiwen Xiao; Ziqiang Xin
- Abstract
Although it is well-known that money or income is related to happiness, little has been learned about the relationship between financial literacy and happiness. The present study used a new financial literacy measurement involving the index of homo economicus (the average of financial knowledge, financial capacity, and financial management values), and the index of homo sociologicus (the average of financial ethics and wealth values), based on the triarchic theory. The aims were to explore the mediation or moderation role of income between financial literacy and happiness and test whether financial literacy and income predict happiness independently. On a national representative sample of 10,058 Chinese participants, it was found that the mediation or moderation role of income did not establish between the two indexes of financial literacy and happiness. And the two indexes of financial literacy were better than income to predict happiness. Moreover, the index of homo sociologicus was better than the index of homo economicus to predict happiness. Additionally, when entering five components of financial literacy and income to predict happiness, financial management values and wealth values were also better than income to predict happiness. The findings suggest that investing in financial literacy is more beneficial to happiness than growing income.
- Subjects
FINANCIAL literacy; HAPPINESS; WEALTH &; ethics; CHINESE people; WEALTH management services
- Publication
Journal of Neuroscience, Psychology, & Economics, 2022, Vol 15, Issue 3, p119
- ISSN
1937-321X
- Publication type
Article
- DOI
10.1037/npe0000161