2021/10/09 by Jing Jian Xiao, Nilton Porto
Business, Management and Accounting · Economics, Econometrics and Finance · Psychology · #Accounting #Accounting management #Business #Consumer education #Finance #Financial Literacy, Pension, Retirement Analysis #Financial analysis #Financial literacy #Financial market participants #Financial plan #Financial ratio #Financial services #Housing Market and Economics #Indirect finance #Marketing #Psychological Well-being and Life Satisfaction #Sample (material) #Vulnerability (computing)
paper · doi:10.1111/joca.12418
openalex publication_date 2021/10/09 · crossref created 2021/10/09 · crossref issued 2021/10/14 · crossref published 2021/10/14 · crossref published-online 2021/10/14 · crossref published-print 2022/06/01 · crossref deposited 2023/08/24 · openalex created_date 2025/10/10 · crossref indexed 2026/08/03 · openalex updated_date 2026/08/04
Abstract Consumer financial capability can be defined variously by different researchers. In this study, financial capability is assumed to have three components, financial knowledge, financial behavior, and financial skills. This study examines relative contributions of financial capability components to financial wellbeing among vulnerable consumers. With data from the National Financial Wellbeing Survey commissioned by the Consumer Financial Protection Bureau (CFPB), results show that among financial capability components, financial behavior contributes the most to financial wellbeing of the whole sample, followed by financial skill and financial knowledge. In addition, group differences surface when subsamples in terms of age, poverty status, confidence, and fraud victim status are examined. Results suggest that for low‐income consumers, encouraging them to engage in desirable financial behaviors is more important than teaching them financial knowledge and skills. Findings have implications for financial educators, practitioners, and policymakers to help them recognize the proper financial education or program to be delivered based on consumer vulnerability and components of financial capability.