Work

Consumer financial anxiety during the COVID-19 pandemic

Year: 2025

Type: article

Abstract: This paper examines the determinants of consumer financial anxiety using data from the 2021 National Financial Capability Study (NFCS), which covers the COVID-19 pandemic. Using an ordinal logistic regression, we control for demographic variables and demonstrate that negative events, such as job loss and income reduction, significantly increase financial anxiety, whereas having precautionary savings substantially reduces it. Then, we use a partial least squares structural equation model (PLS-SEM) to study the impacts of financial literacy and financial practices on anxiety. Our findings reveal that, whereas financial literacy has a modest direct effect, positive financial behaviors, such as saving and budgeting, play a significantly greater role in alleviating financial anxiety. The empirical lessons from the study and the analytical framework that we propose extend to post-pandemic consumer financial well-being, with important implications for policy, education, and mental health interventions.

Source: Borsa Istanbul Review

DOI: 10.1016/j.bir.2025.08.008

Authors: Wei Feng, David Spohn, Lianfen Qian, Mohammad Kabir Hassan

Institutions: Barry University, Lynn University, University of Arizona, LSU New Orleans

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Good health and well-being, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,500