Personal Finance and Well-Being: Research on the relationship between personal finance and well-being, and how people can improve their financial well-being.
DOI:
https://doi.org/10.71068/tkr8as41Keywords:
personal finance, well-being, financial education, budget planningAbstract
This article provides a literature review on the relationship between personal finance practices and subjective well-being, exploring how money management affects people's quality of life on different occasions. Based on studies conducted between 2019 and 2024, it analyzes how effective financial management and financial stability are strongly associated with greater personal satisfaction and notable reductions in stress in people. The negative impact of financial stress on mental and emotional health is significant, highlighting the importance of financial education and budget planning as key strategies to improve financial well-being. Financial education provides people with the tools to make informed financial decisions, while proper budget planning facilitates balanced management of income and expenses, thereby reducing anxiety related to finances. In addition, successful interventions, such as personalized financial advice and financial education programs, are reviewed, which have proven effective in reducing financial stress and improving quality of life. These interventions not only help better manage resources but also offer practical strategies to cope with financial challenges. In conclusion, to achieve optimal well-being, it is essential to develop and implement strategies and programs that promote effective financial management. Recommendations include investing in financial education, adopting rigorous budgeting practices, and seeking expert advice, which can significantly improve individuals' financial and overall well-being.
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