Order Creates Value: Personality, Attitudinal and Behavioral Factors of Financial Vulnerability

Abstract

In our research, we aim to become acquainted with the attitudes and financial behaviours of financially fragile social groups. Based on an online questionnaire survey (N=22933 adult), we formed groups by cluster analysis and compared them to each other. We examined the groups with multivariable statistical methods, underscoring the characteristics relating to financial vulnerability. Beside we developed the metric for financial fragility. The results draw attention that financial fragility has multiple, complex, interrelated reasons. In terms of financial personality, attitude, and behaviour, they reached the highest average point in case of distinctly adverse claims, while the lowest at beneficial claims. Our results demonstrate that even if the financially vulnerable cluster accounts for 9%, the group of 'money pits' and the 'passive' show several such attitudes and behavioural patterns that could lead to financial fragility in the future. The cumulative ratio of these groups amounts to 32%. Financially vulnerable people do not take good care of either their finances or their household, they can't plan or prolong their wishes, and they judge their situation incurable, which is coupled with anxiety.