Skip to main content

Advertisement

SpringerLink
Log in

Acting for Happiness: Financial Behavior and Life Satisfaction of College Students

  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

Recent research on well-being suggests that domain-specific behaviors contribute to domain-specific satisfactions, which in turn contribute to an individual’s overall satisfaction with life. Our study is an attempt to add to the literature by observing these phenomena from a financial perspective. Using data collected from a sample of undergraduate students at a major state university in the U.S. and employing structural equation modeling, we have found evidence suggesting that positive financial behaviors contribute to financial satisfaction and financial satisfaction in turn contributes to life satisfaction. In addition, positive financial behaviors contribute to life satisfaction through two more mediating variables: academic performance and academic satisfaction.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Aitken, N. D. (1982). College student performance, satisfaction and retention: specification and estimation of a structural model. The Journal of Higher Education, 53(1), 32–50. doi:10.2307/1981537.

    Article  Google Scholar 

  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423. doi:10.1037/0033-2909.103.3.411.

    Article  Google Scholar 

  • Andrews, B., & Wilding, J. M. (2004). The relation of depression and anxiety to life-stress and achievement in students. The British Journal of Psychology, 95, 509–521. doi:10.1348/0007126042369802.

    Article  Google Scholar 

  • Arnett, J. J. (2000). Emerging adulthood: A theory of development from the late teens through the twenties. The American Psychologist, 55, 469–480. doi:10.1037/0003-066X.55.5.469.

    Article  Google Scholar 

  • Arthaud-Day, M. L., & Near, J. P. (2005). The wealth of nations and the happiness of nations: Why ‘‘accounting’’ matters. Social Indicators Research, 74, 511–548. doi:10.1007/s11205-004-6397-8.

    Article  Google Scholar 

  • Baum, S., & O’Malley, M. (2003). College on credit: How borrowers perceive their education debt: Results of the 2002 national student loan survey. (Final report). Washington, DC: Nellie Mae Corporation.

    Google Scholar 

  • Benjamin, M. (1994). The quality of student life: Toward a coherent conceptualization. Social Indicators Research, 31, 205–264. doi:10.1007/BF01078209.

    Article  Google Scholar 

  • Benjamin, M., & Hollings, A. (1995). Toward a theory of student satisfaction: An exploratory study of the “quality of student life”. Journal of College Student Development, 38, 213–228.

    Google Scholar 

  • Benjamin, M., & Hollings, A. (1997). Student satisfaction: Test of an ecological model. Journal of College Student Development, 38, 213–228.

    Google Scholar 

  • Bowling, A., & Windsor, J. (2001). Towards the good life: A population survey of dimensions of quality of life. Journal of Happiness Studies, 2, 55–81. doi:10.1023/A:1011564713657.

    Article  Google Scholar 

  • Broadbridge, A., & Swanson, V. (2006). Managing two roles: A theoretical study of students’ employment whilst at university. Community Work & Family, 9(2), 159–179. doi:10.1080/13668800600586878.

    Article  Google Scholar 

  • Cha, K.-H. (2003). Subjective well-being among college students. Social Indicators Research, 62–63, 455–477. doi:10.1023/A:1022669906470.

    Article  Google Scholar 

  • Chow, H. P. H. (2005). Life satisfaction among university students in a Canadian prairie city: A multivariate analysis. Social Indicators Research, 70, 139–150. doi:10.1007/s11205-004-7526-0.

    Article  Google Scholar 

  • Cummins, R. A. (2000a). Personal income and subjective well-being: A review. Journal of Happiness Studies, 1, 133–158. doi:10.1023/A:1010079728426.

    Article  Google Scholar 

  • Cummins, R. A. (2000b). Objective and subjective quality of life: an interactive model. Social Indicators Research, 52, 55–72. doi:10.1023/A:1007027822521.

    Article  Google Scholar 

  • Diener, E. (1984). Subjective well-being. Psychological Bulletin, 95(3), 542–575. doi:10.1037/0033-2909.95.3.542.

    Article  Google Scholar 

  • Diener, E., & Biswas-Diener, R. (2002). Will money increase subjective well-being? Social Indicators Research, 57(2), 119–169. doi:10.1023/A:1014411319119.

    Article  Google Scholar 

  • Diener, E. D., Emmons, R. A., Larsen, R. J., & Griffin, S. (1985). The satisfaction with life scale. Journal of Personality Assessment, 49(1), 71–75. doi:10.1207/s15327752jpa4901_13.

    Article  Google Scholar 

  • GAO. (2001). Consumer finance: College students and credit cards. Washington, DC: United States General Accounting Office.

    Google Scholar 

  • Grable, J., & Joo, H. (2006). Student racial differences in credit card debt and financial behaviors and stress. College Student Journal, 40(2), 400–408.

    Google Scholar 

  • Hayhoe, C. R., Leach, L. J., Turner, P. R., Bruin, M. J., & Lawrence, F. C. (2000). Differences in spending habits and credit card use of college students. The Journal of Consumer Affairs, 34(1), 113–133.

    Article  Google Scholar 

  • Headey, B., Muffels, R., & Wooden, M. (2008). Money does not buy happiness: Or does it? A reassessment based on the combined effects of wealth, income and consumption. Social Indicators Research, 87(1), 65–82. doi:10.1007/s11205-007-9146-y.

    Article  Google Scholar 

  • Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, 89, 309–322.

    Google Scholar 

  • Hsieh, C.-M. (2004). Income and financial satisfaction among older adults in the United States. Social Indicators Research, 66, 249–266. doi:10.1023/B:SOCI.0000003585.94742.aa.

    Article  Google Scholar 

  • Joo, H. (2008). Personal financial wellness. In J. J. Xiao (Ed.), Handbook of consumer finance research (pp. 21–33). New York: Springer. doi:10.1007/978-0-387-75734-6_2.

    Google Scholar 

  • Lounsbury, J. W., Saudargas, R. A., Gibson, L. W., & Leong, F. T. (2005). An investigation of broad and narrow personality traits in relation to general and domain-specific life satisfaction of college students. Research in Higher Education, 46(6), 707–729. doi:10.1007/s11162-004-4140-6.

    Article  Google Scholar 

  • Lynbomirsky, S., Sheldon, K., & Schkade, D. (2005). Pursuing happiness: The architecture of sustainable change. Review of General Psychology, 9(2), 111–131. doi:10.1037/1089-2680.9.2.111.

    Article  Google Scholar 

  • Lyons, A. C. (2008). Risky credit behavior of college students. In J. J. Xiao (Ed.), Handbook of consumer finance research (pp. 185–207). New York: Springer. doi:10.1007/978-0-387-75734-6_11.

    Google Scholar 

  • Maddux, E. M. (2002). A behavioral model to optimize financial quality of life. Social Indicators Research, 60, 155–177. doi:10.1023/A:1021261014699.

    Article  Google Scholar 

  • Manning, R. D. (2000). Credit card nation: The consequences of America’s addiction to credit. New York: Basic Books.

    Google Scholar 

  • Michalos, A. C. (1991). Global report on student well-being. Volume I: Life satisfaction and happiness. New York: Springer-Verlag.

    Google Scholar 

  • Michalos, A. C., & Orlando, J. A. (2006). A note on student quality of life. Social Indicators Research, 79, 51–59. doi:10.1007/s11205-005-2404-y.

    Article  Google Scholar 

  • Mugenda, O. M., Hira, T. K., & Fanslow, A. M. (1990). Assessing the causal relationship among communication, money management practices, satisfaction with financial status, and satisfaction with quality of life. Lifestyles: Family and Economic Issues, 11(4), 343–360. doi:10.1007/BF00987345.

    Article  Google Scholar 

  • Noel-Leviz. (2007). National student satisfaction and priorities report. Retrieved September 15, 2007 from http://www.noellevitz.com/benchmark2007.

  • O’Neill, B., Xiao, J. J., Bristow, B. J., Brennan, P., & Kerbel, C. M. (2000). Successful financial goal attainment: Perceived resources and obstacles. Financial Counseling and Planning, 11(1), 1–12.

    Google Scholar 

  • Otake, K., Shimai, S., Tanaka-Matsumi, J., Otsui, K., & Fredrickson, B. I. (2006). Happy people become happier through kindness: A counting kindnesses intervention. Journal of Happiness Studies, 7, 361–375. doi:10.1007/s10902-005-3650-z.

    Article  Google Scholar 

  • Pavot, W., & Diener, E. (1993). Review of the satisfaction with life scale. Psychological Assessment, 5(2), 164–172. doi:10.1037/1040-3590.5.2.164.

    Article  Google Scholar 

  • Pilcher, J. J. (1998). Affective and daily event predictors of life satisfaction in college students. Social Indicators Research, 43, 291–306. doi:10.1023/A:1006883231707.

    Article  Google Scholar 

  • Ross, S., Cleland, J., & Macleod, M. J. (2006). Stress, debt and undergraduate medical student performance. Medical Education, 40, 584–589. doi:10.1111/j.1365-2929.2006.02448.x.

    Article  Google Scholar 

  • Schmuck, P., Kasser, T., & Ryan, R. M. (2000). Intrinsic and extrinsic goals: Their structure and relationship to well-being in German and U.S. college students. Social Indicators Research, 50, 225–241. doi:10.1023/A:1007084005278

    Google Scholar 

  • Schyns, P. (2001). Income and satisfaction in Russia. Journal of Happiness Studies, 2, 173–204. doi:10.1023/A:1011564631319.

    Article  Google Scholar 

  • Sighieri, C., Desantis, G., & Tanturri, M. L. (2006). The richer, the happier? An empirical investigation in selected European countries. Social Indicators Research, 79, 455–476. doi:10.1007/s11205-005-5394-x.

    Article  Google Scholar 

  • Sirgy, M. J., Grzeskowiak, S., & Rahtz, D. (2007). Quality of college life (QCL) of students: Developing and validating a measure of well-being. Social Indicators Research, 80, 343–360. doi:10.1007/s11205-005-5921-9.

    Article  Google Scholar 

  • Sirgy, M. J., Michalos, A. C., Ferriss, A. L., Easterlin, R. E., Patrick, D., & Pavot, W. (2006). The quality-of-life (QOL) research movement: Past, present, and future. Social Indicators Research, 76, 343–466. doi:10.1007/s11205-005-2877-8.

    Article  Google Scholar 

  • Vaez, M., Kristenson, M., & Lafamme, L. (2004). Perceived quality of life and self-rated health among first-year university students: A comparison with their working peers. Social Indicators Research, 68, 221–234. doi:10.1023/B:SOCI.0000025594.76886.56.

    Article  Google Scholar 

  • Vera-Toscano, E., Ateca-Amestoy, V., & Serrano-del-Rosal, R. (2006). Building financial satisfaction. Social Indicators Research, 77, 211–243. doi:10.1007/s11205-005-2614-3.

    Article  Google Scholar 

  • Xiao, J. J. (2008). Applying behavior theories to financial behavior. In J. J. Xiao (Ed.), Handbook of consumer finance research (pp. 69–81). New York: Springer. doi:10.1007/978-0-387-75734-6_5.

    Google Scholar 

  • Xiao, J. J., O’Neill, B., Prochaska, J., Kerbel, C., Brennan, P., & Bristow, B. (2004). A consumer education program based on the transtheoretical model of change. International Journal of Consumer Studies, 28(1), 55–65. doi:10.1111/j.1470-6431.2004.00334.x.

    Article  Google Scholar 

  • Xiao, J.J., Shim, S., Barber, B., & Lyons, A. (2007). Academic success and well-being of college students: Financial behaviors matter. (Report). Tucson, AZ: University of Arizona, Take Charge America Institute for Consumer Financial Education and Research.

  • Xiao, J. J., Sorhaindo, B., & Garman, E. T. (2006). Financial behavior of consumers in credit counseling. International Journal of Consumer Studies, 30(2), 108–121. doi:10.1111/j.1470-6431.2005.00455.x.

    Article  Google Scholar 

  • Yestim, U. (2003). The impacts of individualism/collectivism, self-esteem, and feeling of mastery on life satisfaction among the Turkish university students and academicians. Social Indicators Research, 61, 297–317. doi:10.1023/A:1021911504113.

    Article  Google Scholar 

  • Yu, G. B.-H., & Lee, D.-J. (2008). A model of quality of college life (QCL) of students in Korea. Social Indicators Research, 87(2), 269–285. doi:10.1007/s11205-007-9172-9.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Rhode Island, Kingston, RI, USA

    Jing Jian Xiao

  2. University of Arizona, Tucson, AZ, USA

    Chuanyi Tang & Soyeon Shim

Authors
  1. Jing Jian Xiao
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Chuanyi Tang
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Soyeon Shim
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jing Jian Xiao.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Xiao, J.J., Tang, C. & Shim, S. Acting for Happiness: Financial Behavior and Life Satisfaction of College Students. Soc Indic Res 92, 53–68 (2009). https://doi.org/10.1007/s11205-008-9288-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-008-9288-6

Keywords

Search

Navigation