The role of impulsivity and financial satisfaction in a moderated mediation model of consumer financial resilience and life satisfaction

This paper explores the direct and indirect associations between financial resilience and life satisfaction, using the moderation of non-impulsive behavior and mediation of financial satisfaction. We analyze the Australian household dataset, named the Household, Income and Labour Dynamics in Australia (HILDA) Survey, to meet the objectives of this paper. Furthermore, we use the PROCESS Models 4 and 7 to test the mediation and the combined moderated mediation relationships, respectively. We find the complete mediation of the relationship between financial resilience and life satisfaction by financial satisfaction. Also, we find that both financial resilience and non-impulsive behavior positively contribute to financial satisfaction, which is positively associated with life satisfaction. Our research supports the need for consumers to build emergency funds as financial resilience is related to consumer well-being. Our research also recommends that impulsive behavior should be addressed by the personal finance curriculum and financial advisors. Our research contributes by showing that financial satisfaction is an important predictor of consumers’ well-being. The ability to access financial resources, which increases for non-impulsive consumers, is associated with increased life satisfaction but only via financial satisfaction.