Psychological Determinants of Financial Well-Being among Young Working Adults During the Covid-19 Pandemic: The Sequential Mediation Model

Abstract

This study aimed to investigate the effect of future time perspective on financial well-being and the mediating role of financial goal clarity, subjective financial knowledge, and financial behaviour in the relationship between future time perspective and financial wellbeing among young working adults in China during the COVID-19 pandemic. A crosssectional study was conducted on 526 young working adults using an online survey questionnaire. Covariance based-structural equation modelling (SEM) and AMOS software were used to evaluate the measurement model and the proposed serial mediation model. There was a significant positive relationship between future time perspective and financial well-being, future time perspective and financial goal clarity, financial goal clarity and subjective financial knowledge, subjective financial knowledge and financial behaviour, as well as financial behaviour and financial well-being. Moreover, the results showed that financial goal clarity, subjective financial knowledge, and financial behaviour sequentially mediated the relationship between future time perspective and financial wellbeing. The findings shed light on the underlying mechanisms that drive young working adults’ financial well-being. Theoretical and practical implications were discussed, and psychological interventions are suggested to implement among young working adults to form positive financial beliefs and values.