Protecting Well-Being through Financial Shocks

Abstract

The ability to provide more than problem-solving interventions is useful in reducing client stress. Protective features can be built and amplified during financial uncertainty that may increase individuals’ resilience against factors that have the potential to cause damage to their financial well-being. To understand the predictive relationship between financial stressors, prior financial experience and exposure, and resources impact on financial well-being, a three-model hierarchical multiple regression was conducted with financial well-being as the dependent variable. Greater availability of resources increased financial well-being above and beyond the effects of stressors and prior exposure and experience. However, it is important to note that greater availability of resources was not measured just by income, rather it was variables that assessed other forms of capital. Specifically, individual qualities such as self-control and perceived health positively contributed to financial well-being. Results indicate that maintaining financial well-being is about more than knowledge and skill. Increasing opportunities for financial socialization and building clients’ sense of control may serve as a key buffer during times of financial stress.