Abstract
Building on theory and research in financial capability, this study enhances a financial capability model by integrating psychological self-sufficiency (PSS) theory as part of the financial literacy component. Using PSS, a concept from workforce development literature, this study investigates the extent to which an empowerment-based PSS process in targeting financial goals is associated with financial literacy. Path analyses were conducted using a sample of 187 low-income individuals from a large social service agency in Chicago. Findings suggest that perceived financial barriers and financial hope—the two targets of PSS interventions—are associated with financial attitude and behavior, controlling for other demographic variables. These findings can guide policy makers and service providers to build in PSS process-based financial literacy components in vocational and adult education and training as a more human-centered approach to workforce development.
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Funding
This work was supported by the U.S. Department of Health and Human Services / Administration for Children and Families under Grant [90HG1003]; Korea Foundation; and Lloyd A. Fry Foundation. Additional funding has been received by HHCS from Chicago Housing Authority (CHA) for The Family Self-Sufficiency Program (FSS), coordinated through the U.S. Department of Housing and Urban Development (HUD).
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This study was granted approval by the Institutional Review Board (IRB) of Loyola University Chicago (IRB project number #2178) and the study was performed in accordance with the ethical standards as laid down in the 1964 Declaration of Helsinki and its later amendments or comparable ethical standards.
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Hong, P.Y.P., Wathen, M.V., Shin, A.J. et al. Psychological Self-Sufficiency and Financial Literacy among Low-Income Participants: An Empowerment-Based Approach to Financial Capability. J Fam Econ Iss 43, 690–702 (2022). https://doi.org/10.1007/s10834-022-09865-w
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DOI: https://doi.org/10.1007/s10834-022-09865-w