Financial Wellness Meaning of Financial Wellness The terms economic well-being and financial well-being are used interchangeably in this study. Economic well-being and financial well-being can be proxies of financial wellness. The meaning of economic well-being has evolved from simple happiness or general satisfaction with one’s material or financial situation to a complicated perception of both the material and nonmaterial aspects of an individual’s financial situation. The complicated perception includes satisfaction with income and savings, awareness of opportunities, ability to make ends meet, sense of material security, and sense of fairness of the reward distribution system (Strumpel, 1976).
Williams (1983) theorized economic well-being as a function of material and non-material aspects of one’s financial situation. To identify economic well-being, she included money income, real or full income, agreement about distribution, and psychic income or perceived adequacy of income as independent variables. Fergusson, Horwood, and Beautrais (1981) described economic well-being with the level of financial inputs, such as income and assets.