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.

Keywords: Financial Self-Efficacy, Older Adults, PERMA Well Being, Positive Psychology, Psychosocial

How to Cite:

Asebedo, S. D., (2019) “Psychosocial Attributes and Financial Self-Efficacy Among Older Adults”, Journal of Financial Therapy 10(1). doi: https://doi.org/10.4148/1944-9771.1196