Financial Wellness Concepts
From financial literacy to financial capability -and everything in between - we explain key terms related to financial well-being in our latest episode of Making Cents of Money!
As summarized in the episode,
- Financial literacy refers to the knowledge you can gain from financial education.
- Financial capability refers to how you use that knowledge with your existing resources – be that skill, confidence, or financial capital – to navigate opportunities for financial decision-making.
- Financial wellness refers to your perception of your current financial situation and habits and ability to weather financial storms in the future and reach your financial goals.
Relevent Links
Research on Financial Terms
- De Bruijn, E. J., & Antonides, G. (2022). Poverty and economic decision making: a review of scarcity theory. Theory and Decision, 92(1), 5-37.
- Johnson, E., & Sherraden, M. S. (2007). From financial literacy to financial capability among youth. J. Soc. & Soc. Welfare, 34, 119.
- Lee, J. M., Lee, J., & Kim, K. T. (2020). Consumer financial well-being: Knowledge is not enough. Journal of Family and Economic Issues, 41(2), 218-228.
- Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of pension economics & finance, 10(4), 497-508.
- Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of consumer affairs, 44(2), 276-295.
- Rothwell, D. W., Khan, M. N., & Cherney, K. (2016). Building financial knowledge is not enough: Financial self-efficacy as a mediator in the financial capability of low-income families. Journal of Community Practice, 24(4), 368-388.
- Sherraden, M. S. (2010). Financial capability: What is it, and how can it be created?
- Xiao, J. J., & O'Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712-721.
