Emerging adults’ Financial Well-being: Conceptualization and Measurement

Financial well-being is a positive financial condition that has both an objective\r\nand a subjective side. Objective financial well-being refers to material\r\nresources such as income, savings, and assets, while subjective financial\r\nwell-being corresponds to an individual’s emotional and cognitive evaluation\r\nof their own financial condition. The current chapter aims to properly\r\ndefine this construct, clarify how the conceptualization of financial well-being\r\nhas changed over the last decades, and emphasize important considerations\r\nrelated to financial well-being among emerging adults. In particular, we stress\r\nadjustments this construct should receive in terms of conceptualization and\r\nmeasurement. Furthermore, we highlight that the meaning emerging adults\r\nattribute to financial well-being is shaped by the culture they belong to and\r\nthe socioeconomic conditions of the country they live in. The chapter ends\r\nwith three suggestions to help emerging adults flourish financially.