Uncovering the factors of financial well-being: the role of self-control, self-efficacy, and financial hardship

Financial well-being, a key determinant of life satisfaction, is increasingly threatened by economic volatility and complex financial systems. This study examines the interplay between psychological traits—financial self-control and financial self-efficacy—and their relationship with financial well-being, mediated by financial hardship. Theoretical frameworks include Scheier and Carver’s Self-Regulation Theory (In: Affect and cognition. Psychology Press, Philadelphia, pp 157–183, 2014), the Behavioral Life-Cycle Hypothesis (Shefrin and Thaler in Econ Inq 26:609–643. 10.1111/j.1465-7295.1988.tb01520.x, 1988; Thaler in Am Econ Rev 108:1265–1287, 2018), and Bandura’s Self-Efficacy Theory (in, Self-efficacy in changing societies, Cambridge University Press, Cambridge, 1997). Data were drawn from the Spanish Survey of Financial Literacy, a nationally representative sample of 8554 individuals. Spain’s unique macroeconomic context, influenced by the 2008 financial crisis and cultural factors such as family financial interdependence, provides a compelling backdrop for analysis. To test the hypotheses concerning the direct and indirect relationships between self-regulation factors and financial well-being, partial least squares structural equation modeling (PLS-SEM) was employed. The findings reveal a robust negative association between deficiencies in financial self-control (β = − 0.250, p