The bottlenecks in making sense of financial well-being

Abstract

PurposeFinancial well-being has gained increased attention in research, policy and the financial sector. The authors contribute to this emerging field by drawing attention to the bottlenecks in financial well-being research and proposing ways for transforming and advancing it.Design/methodology/approachThe authors conducted a semi-systematic review of the latest 120 financial well-being studies from both academic and grey literature and analyse the current issues in defining, conceptualising and measuring it.FindingsThe authors identify the need for a more human-centred approach across content and methodology, conceptualisation and operationalisation, research and practice, that focusses on how individuals experience, interpret and assess financial well-being. The authors highlight the lack of evidence-based interventions for improving financial well-being.Practical implicationsThe authors propose applying design science approach for redefining the problems that individuals need help in solving and for developing and testing interventions that improve financial well-being and are in line with individuals’ needs and aspirations. The authors also call for international qualitative research into the human perspective of financial well-being.Social implicationsFinancial well-being has a significant role in mental health and well-being; therefore, it affects the lives of individuals and societies far beyond financial affairs. Change of perspective can lead to evidence-based interventions that better the lives of many, reduce inequality and develop more balanced communities.Originality/valueThe authors argue that the human dimension has been assumed in financial well-being research, practice and police, rather than confirmed, based on flawed assumptions that what people experience is already known.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0741