Financial decision making

Abstract

Financial decisions can have lasting consequences for consumer welfare and other important decisions. This review summarizes contemporary literature on financial decision making vis-à-vis the promotion of financial well-being, outlining work on financial behaviors that contribute to financial well-being, psychosocial determinants of financial well-being, and the role of situational factors in financial well-being. In addition to reviewing recent research, this article draws attention to some open questions in the field and proposes a trajectory for productive pathways of future research.