insight
Evidence type: Insight i
Qualitative research is more exploratory, and uses a range of methods like interviews, focus groups and observation to gain a deeper understanding about specific issues - such as people’s experiences, behaviours and attitudes.
Quantitative research uses statistical or numerical analysis of survey data to answer questions about how much, how many, how often or to what extent particular characteristics are seen in a population. It is often used to look at changes over time and can identify relationships between characteristics like people’s attitudes and behaviours.
Previous research has shown how financial satisfaction is a key component of life satisfaction, with some research going as far as to suggest that financial satisfaction is an indicator of overall welfare or wellbeing. Research in this area has typically concentrated on the links between financial satisfaction and income, relative income, household characteristics, financial circumstances and perceived income adequacy. This research differentiates itself by looking at the relationship between perceived consumer financial capability and self-reported financial satisfaction.
This 2013 peer-reviewed paper examines the associations between consumer financial capability and financial satisfaction in the United States. It uses data from the 2009 National Financial Capability Study that consists of three linked surveys:
This study focussed on the state-by-state data. The survey asked questions about financial satisfaction, financial capability, financial literacy and financial behaviour, as well as demographic and socio-economic characteristics. The dataset was weighted to be nationally representative of the United States. The final sample size was 26,900. The analysis techniques included descriptive statistics, bivariate analysis including analyses of variance, and multiple regression analysis that interrogated the independent effect of each variable of interest.
The average self-reported financial satisfaction score across all of the respondents was 4.5 (out of ten).
Methodological strengths and limitations:
Relevance:
· Generalisability/transferability:
Jing Jian Xiao, Ph.D. University of Rhode Island Cheng Chen, M.S. Renmin University of China Fuzhong Chen, M.S. Renmin University of China