Exploring the Demographic Predictors of Financial Well-being of Salaried Employees

Abstract

The study explores the association between financial well-being and socio-demographic factors among salaried employees in Kerala, India. Financial well-being is measured using a composite index based on the Consumer Financial Protection Bureau (CFPB) methodology. Group differences were identified using appropriate statistical tests, followed by multiple linear regression, with categorical variables dummy-coded and a quadratic term included for the number of dependents. The model was significant, explaining 22.3% of the variance. Educational qualification, age, and place of residence showed significant associations with financial well-being, whereas annual income and marital status were no longer significant after adjustment. Respondents with senior secondary education and technical/diploma qualifications reported lower financial well-being than postgraduates, and those from semi-urban and rural areas reported higher financial well-being than urban respondents. The number of dependents showed no significant linear or non-linear association. An ordered-logit analysis using categorized financial well-being yielded consistent results, indicating that demographic differences in financial well-being are selective rather than uniform.