|Financial Ratios and Perceived Household Financial Satisfaction
|Year of Publication
|Garrett, S, James, III, RN
|Journal of Financial Therapy
|Methodology, 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.
financial satisfaction/ratios/financial therapy/financial planning/financial exploitation/Financial counseling