The Impact of Financial Well-Being on Subjective Happiness, Innovativeness, and Personal Growth

Abstract

This study examines the impact of the perceived personal financial condition (financial well-being, economic hardship, income change, and financial threat) on subjective happiness and depression and the influence of subjective happiness and depression on personal growth initiative and consumer innovativeness. The theoretical model that depended on the broadenand-build theory of positive emotions was tested on a consumer sample (n = 755) using hierarchical regression analyses. The findings supported the hypotheses and showed the significant impact of personal financial condition on happiness and depression. Financial well-being positively influences subjective happiness and reduces depression. Subjective happiness and depression lead to increased levels of consumer innovativeness and personal growth initiative. This study contributes to the literature by suggesting and empirically testing a comprehensive theoretical model that demonstrates the significant impact of personal financial condition on happiness and depression and, consequently, consumer innovativeness and personal growth initiative.