How closely related are Financial Satisfaction and Subjective Well-Being? Systematic Review and Meta-Analysis.

Financial satisfaction is considered to be one of the determinants of Subjective well-being (SWB), yet the assumption that financial satisfaction is closely associated with SWB has not been tested across nations. This first systematic review and meta-analysis examines the association between financial satisfaction and SWB and tests whether any association is affected by key operational and methodological factors. Following Cochrane and PRISMA guidelines, a systematic (Web of Science, Medline, Embase, PsycINFO and Google scholar) search was conducted (January 1980 to August 2019). Meta-analyses, meta-regressions and subgroup analysis using random-effects models were performed. 24 studies were included in the meta-analysis and the overall association between financial satisfaction and SWB was medium, significant and positive (pooled r= 0.41, 95% CI= 0.38 to 0.44; Q= 7108, I2= 99.7 %, p<0.001). Univariate meta-regressions showed that studies conducted in countries that were more developed (B=0.14, 95% CI: 0.05, 0.24, I2= 79%, R2= 51%), and had used multiple items (B=0.12, 95% CI: 0.01, 0.18, I2= 72%, R2= 30%) instead of single were significantly associated with better financial satisfaction and greater SWB. Our findings highlight the need for designing better tools to measure these core societal concepts; to improve financial satisfaction and hence SWB across the globe.