Investigating Financial well-being in Pakistan

Abstract

This study was an empirical testing of model based on porter’s model for investigating financial well-being. The measurement of financial well-being was tested as a function of several attributes which includes personal characteristics, objective attributes, perceived attributes and evaluated attributes. Objective attributes capture the quantitative measures of financial management and practices. Perceived attributes, indicators of perception regarding financial management and practices as well as assessment of life conditions. Evaluated attributes refers to past financial situation compared to present. The main motive of the survey was to check which group of attributes significantly explain the variance in evaluating financial well-being? For this research, an online questionnaire-based survey been designed and sent to total of 1000 respondents across the four provinces of Pakistan. out of 1000, 504 were received from respondents. Financial well-being was dependent variable which were based on several question by adopting Cantril’s survey (1965). By regressing all of the independent variables on dependent variable which is financial well-being produced an R2 of 0.73 which was significant statistically as the pvalue was less than 0.01. The results of the study supported the theoretical model. Results gave us clear insight that financial well-being is a function of personal characteristics, objective attributes, perceived attributes and evaluated attributes.