situation. To identify economic well-being, she included money income, real or full income, agreement about distribution, and psychic income or perceived adequacy of income.

Material Well-Being

Material well-being is another concept that is used as a proxy of economic and financial well-beings. Family material well-being refers to the mix of goods, commodities, and services to which family members have access (Fergusson, Horwood, & Beautrais, 1981). Indicators of material well-being include ownership (home, car, television, etc.) and economizing behavior such as cutting down or reducing expenditures. Other examples of economizing strategies include postponed visits to a physician, money borrowed to meet everyday living costs, and reduced weekly shopping to save money.

Personal Financial Wellness

Personal financial wellness is a comprehensive, multidimensional concept incorpo rating financial satisfaction, objective status of financial situation, financial attitudes, and behavior that cannot be assessed through one measure (Joo, 1998).

Financial satisfaction is a key component of financial health. However, financial satisfaction does not necessarily mean good financial health. Sometimes, people can be satisfied with their financial situation, even though they have large debts. This is why an objective assessment of a person’s financial situation is an important component of personal financial wellness. With an objective diagnosis, personal financial wellness can be measured reliably. In addition to subjective financial satisfaction and objective measures, individual perceptions (i.e., financial attitude) and financial behaviors are important components because these measure the potential of change in personal financial wellness. An individual’s personal financial wellness can be said to be “high” (or a person is “well”) when individuals are satisfied with their financial situations, their objective status is desirable, they have positive financial attitudes, and exhibit healthy financial behavior.

As indicated above, the concepts of personal financial wellness, economic well-being, and financial well-being are part of the broader concept of well-being. Much is known about well-being in general; however, little is known about personal finan cial wellness specifically. The following section presents some proxies of personal financial wellness.

Payday loan can solve all your problems!

Well-Being

The general consensus among researchers is that personal financial wellness is a sub-construct of overall well-being. Well-being means “non-instrumentally or ultimately good for a person” (plato.stanford.edu/entries/well-being), and well-being in an ordinary term is closely related with happiness or satisfaction. While well-being is used mostly with physical health, there are six interrelated domains that construct well-being: job, finances, house, health, leisure, and environmental satisfaction (Fletcher & Lorenz, 1985; van Praag, Frijters, & Ferrer-i-Carbonell, 2000).
Well-being is usually viewed as a subjective concept. Subjective well-being refers to “how people evaluate their lives and includes variables such as life and marital satisfaction, lack of depression and anxiety, and positive moods and emotions” (Diener, Suh, & Oishis, 1998, p. 25). Self-reported subjective well-being is a stable concept that can be measured reliably over time (Winter, Morris, & Gutkowska, 1999).

Zimmerman (1995) clarified the term “well-being” as “the state of being healthy, happy, and free from want; outcome of long-term socialization and developmental processes and concurrent environmental conditions and processes; composite of satisfactions in domains of marriage, job, leisure, family, and housing; degree to which basic needs are met” (p. 8). These concepts are now accepted as the general definitions of well-being.

Economic or Financial Well-Being

Economic and financial well-beings are often used interchangeably. Generally, financial well-being tends to include broader aspects of financial life, and economic well-being is most often used with income level (e.g., Breen, 1991; Hayhoe, 1990; Porter &) Garman, 1993; Williams, 1993).

Breen (1991) viewed financial well-being as having sufficient income and assets, quality health and personal care, the right mix of products and services, as well as legal readiness and professional guidance. Williams (1993) theorized that economic well-being was a function of material and non-material aspects of one’s financial situation. To identify economic well-being, she included money income, real or full income, agreement about distribution, and psychic income or perceived adequacy of income.

The BEST Payday loan service!