Applied Economics & Business

ABSTRACT

This review plots the existing literature on financial wellbeing by exploring its definitions, constructs, and its predictors, namely financial knowledge, financial attitude, and financial behavior, socioeconomic and demographic factors. Wellbeing is also considered a form of capital that should be developed over the individual’s life cycle (Zemtsov and Osipova, 2016). Due to global economic challenges, it is important to investigate the definition and level of financial well-being of individuals in different economic contexts and its predictors. The studies under review also capture a paradigm shift from mere knowledgebased financial literacy to a broader financial wellbeing concept. A systematic review methodology was employed to comprehensively analyze the existing literature on financial well-being. This approach involved a structured and rigorous process to identify, evaluate, and synthesize relevant studies. This review paper has identified several research gaps to address in the future financial wellbeing research endeavors. The review depicted that financial wellbeing studies are gaining its momentum; however, they have been conducted more in developed countries and lack of focus on developing county such as Sri Lanka. Financial wellbeing is an evolving phenomenon which should be explored applying both quantitative and qualitative methods. Understanding and enabling key predictors of financial wellbeing will boost the immunity of individuals to navigate future personal financial circumstances in a more informed and sustainable manner.

KEYWORDS: Financial Wellbeing, Financial Literacy, Socioeconomic Factors