The Relationship Between Dispositional Affectivity,Perceived Income Adequacy,and Financial Strain: An Analysis of Financial Stress Perceptions

Despite financial concerns representing of the most substantial sources of stress, the intersection between individual differences and financial stress has received sparce attention. Emphasizing the cognitive-appraisal process, our study reveals financial stress perceptions partly reflect a dispositional tendency to interpret financial information either more positively or negatively. Across two studies (N = 441; N = 348), we found that positive and negative affect predict subjective financial perceptions of income adequacy. Further, using Relative Weights Analysis, we demonstrate that in predicting financial stress perceptions, dispositional affect is as important as, or more important than, objective measures of financial stress (i.e., household income and debt). Lastly, using moderated mediation, we found that both current and future perceived income adequacy mediate the relationship between one’s income and their experience of affective financial strain, and dispositional affect moderates this relationship. Our work informs current research and interventions seeking to understand individual differences in financial stress perceptions.