Financial Ratios and Perceived Household Financial Satisfaction

TitleFinancial Ratios and Perceived Household Financial Satisfaction
Publication TypeJournal Article
Year of Publication2013
AuthorsGarrett, S, James, III, RN
JournalJournal of Financial Therapy
KeywordsMethodology, Net Worth and Assets

This paper tests the relative strength of three objective measures of financial health (using the solvency, liquidity, and investment asset ratio) in predicting a household s subjective feeling of current financial satisfaction. Using a sample of 6,923 respondents in the 2008 Health and Retirement Study this paper presents evidence of two main findings: 1) the solvency ratio is most strongly associated with financial satisfaction levels based on a cross-sectional design and 2) changes in the investment asset ratio are most strongly associated with changes in financial satisfaction over time.

Endnote Keywords

financial satisfaction/ratios/financial therapy/financial planning/financial exploitation/Financial counseling

Endnote ID


Citation Key7960