Technology and happiness: the association between online budget planner and financial satisfaction

Thanh Dat Le, Nguyen Nguyen, Quynh Nguyen

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose
This study examines the impact of online budget planning platforms (e.g. Goodbudget, Mint) on households’ financial satisfaction. Furthermore, the authors identify the channels and the cross-sectional heterogeneity of this impact based on households’ income, financial literacy and minority groups.

Design/methodology/approach
This study utilizes data from the National Financial Capability Study (NFCS) for 2018 and 2021, which encompasses over 50,000 households. The authors apply logit and ordered logit regression techniques to examine the research questions and use propensity score matching and entropy balancing to address potential sample selection bias.

Findings
The authors find a substantial correlation between the adoption of financial budgeting tools and a notable improvement in households’ financial satisfaction, driven by the promotion of healthy financial behaviors and enhanced financial self-efficacy. The empirical findings underscore that the positive effects of online budget planners are more pronounced among low-income, financially illiterate and Black households.

Originality/value
This study is the first to examine the impact of online budget planners on household financial satisfaction. It contributes to the literature by offering valuable insights into how these tools influence financial satisfaction within households
Original languageEnglish
Pages (from-to)100-122
Number of pages23
JournalReview of Behavioral Finance
Volume17
Issue number1
Early online date19 Nov 2024
DOIs
Publication statusPublished - 14 Jan 2025

Keywords

  • Online budget planners
  • Financial satisfaction
  • Financial behaviors
  • Financial self-efficacy
  • FinTech
  • Household finance
  • Disadvantaged households
  • Fintech

Fingerprint

Dive into the research topics of 'Technology and happiness: the association between online budget planner and financial satisfaction'. Together they form a unique fingerprint.

Cite this