Effective finance to increase financial well-being for low-income families: Empirical examination and policy implications

Effective finance is a finance system that assures individuals and families of having beneficial access to financial services and skills. It is a precondition for financial well-being. Drawing upon a low-income sample (N = 1473) from the 2016 National Financial Well-Being Survey, this study examines whether financial skills and financial access are associated with financial well-being and material hardship. The results identify positive interactions between financial access and financial skills on financial well-being. The findings point to effective finance policies that have the potential to reduce material hardship and support financial well-being for low-income families.