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Psychological needs and financial well-being: the role of consumer spending self-control

Author

Listed:
  • Laureane du Plessis

    (University of Pretoria)

  • Yolanda Jordaan

    (University of Pretoria)

  • Liezl-Marié van der Westhuizen

    (University of Pretoria)

Abstract

Financial service providers continually strive to develop innovative financial products and services that address customer needs and aim to improve customers’ financial well-being. Previous studies discovered that psychological need satisfaction is positively associated with psychological well-being and growth, while psychological need frustration is associated with problematic behaviour and ill-being. However, uncertainty still exists as to whether psychological needs are associated with financial well-being. Furthermore, whereas psychological need satisfaction is associated with positive day-to-day behaviours such as exhibiting self-control, psychological need frustration has been associated with irresponsible spending. Spending can be a psychological coping mechanism, and as such, the regulation of spending behaviour may aid financial well-being. Therefore, the main purpose of this article is to explore the relationship between psychological needs and financial well-being, and to assess whether consumer spending self-control can act as a regulating mechanism in this relationship. Data were collected by means of a self-administered questionnaire distributed via an online paid-for consumer panel to credit-active South African consumers. The results revealed that CSSC had a mediating effect on the relationships between psychological needs and financial well-being. This highlights the importance of developing and promoting consumer spending self-control as a strategy for financial well-being.

Suggested Citation

  • Laureane du Plessis & Yolanda Jordaan & Liezl-Marié van der Westhuizen, 2024. "Psychological needs and financial well-being: the role of consumer spending self-control," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(4), pages 1197-1206, December.
    • Handle: RePEc:pal:jofsma:v:29:y:2024:i:4:d:10.1057_s41264-024-00270-y
    DOI: 10.1057/s41264-024-00270-y
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    References listed on IDEAS

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