Financial Well-Being and Self-Efficacy in Sandwich Generation: The Role of Mindfulness
DOI: https://doi.org/10.70184/pw3n6566
financial self-efficacy, financial mindfulness, financial well-being
Abstract
Purpose: Financial Mindfulness is essential for complementing self-confidence in managing personal finances to achieve financial well-being. This study aims to investigate how individuals' self-efficacy influences their mindfulness in making prudent financial decisions, thereby attaining financial well-being. The research subjects are members of the Sandwich Generation, who face the dual financial burden of caring for aging parents and supporting children, often experiencing stress and complexity in financial management.
Research Design and Methodology: This study employs a quantitative design with a sample of 281 respondents from the Sandwich Generation in Indonesia. Data were analyzed using Structural Equation Modelling - Partial Least Square (SEM-PLS) with SMARTPLS Version 3.
Findings and Discussion: The findings indicate that Financial Self-Efficacy positively influences Financial Mindfulness, Financial Mindfulness positively impacts Financial Well-Being, and Financial Self-Efficacy positively affects Financial Well-Being. Additionally, Financial Mindfulness has been found to positively mediate the effect of Financial Self-Efficacy on Financial Well-Being, which is a novel contribution of this research
Implications: The managerial implications of these findings are valuable for financial planners, financial institutions, and policymakers focusing on the financial well-being of the Sandwich Generation in Indonesia.
References
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50(1), 179–211. https://doi.org/10.47985/dcidj.475
Ajzen, I. (2020). The theory of planned behavior: Frequently asked questions. Human Behavior and Emerging Technologies, 2(4), 314–324. https://doi.org/10.1002/hbe2.195
Ali, M., Qamar, J., Asif, M., Khemta, N., & Jamil, H. (2016). How Knowledge and Financial Self-Efficacy Moderate the Relationship between Money Attitudes and Personal Financial Management Behavior Sustainable Electricity Management for Pakistan View project. European Online Journal of Natural and Social Sciences, 5(2), 296–308.
Anthony, M., Sabri, M. F., Rahim, H. A., & Othman, M. A. (2022). Financial Socialisation and Moderation Effect of Gender in The Influence of Financial Behaviour on Financial Well-Being among Young Adults. Malaysian Journal of Consumer and Family Economics, 28, 68–99.
Asandimitra, N., & Kautsar, A. (2019a). The influence of financial information, financial self efficacy, and emotional intelligence to financial management behavior of female lecturer. Humanities and Social Sciences Reviews, 7(6), 1112–1124. https://doi.org/10.18510/hssr.2019.76160
Asandimitra, N., & Kautsar, A. (2019b). The influence of financial information, financial self efficacy, and emotional intelligence to financial management behavior of female lecturer. Humanities and Social Sciences Reviews, 7(6), 1112–1124. https://doi.org/10.18510/hssr.2019.76160
Bohecker, L., & Doughty Horn, E. A. (2016a). Increasing Students’ Empathy and Counseling Self-Efficacy Through a Mindfulness Experiential Small Group. Journal for Specialists in Group Work, 41(4), 312–333. https://doi.org/10.1080/01933922.2016.1232322
Bohecker, L., & Doughty Horn, E. A. (2016b). Increasing Students’ Empathy and Counseling Self-Efficacy Through a Mindfulness Experiential Small Group. Journal for Specialists in Group Work, 41(4), 312–333. https://doi.org/10.1080/01933922.2016.1232322
Bourova, E., Anderson, M., Ramsay, I., & Ali, P. (2018). Impacts of financial literacy and confidence on the severity of financial hardship in Australia. Australasian Accounting, Business and Finance Journal, 12(4), 4–24. https://doi.org/10.14453/AABFJ.V12I4.2
Brown, K. W., & Ryan, R. M. (2003a). The Benefits of Being Present: Mindfulness and Its Role in Psychological Well-Being. Journal of Personality and Social Psychology, 84(4), 822–848. https://doi.org/10.1037/0022-3514.84.4.822
Brown, K. W., & Ryan, R. M. (2003b). The Benefits of Being Present: Mindfulness and Its Role in Psychological Well-Being. Journal of Personality and Social Psychology, 84(4), 822–848. https://doi.org/10.1037/0022-3514.84.4.822
Brüggen, E. C., Hogreve, J., Holmlund, M., Kabadayi, S., & Löfgren, M. (2017). Financial well-being: A conceptualization and research agenda. Journal of Business Research, 79, 228–237. https://doi.org/10.1016/j.jbusres.2017.03.013
Castro-González, S., Fernández-López, S., Rey-Ares, L., & Rodeiro-Pazos, D. (2020). The Influence of Attitude to Money on Individuals’ Financial Well-Being. Social Indicators Research, 148(3), 747–764. https://doi.org/10.1007/s11205-019-02219-4
CEDE, Ç. Ş., & GÖZEN, A. (2021). THE RELATIONSHIP BETWEEN MINDFULNESS AND SELF-EFFICACY. International Journal of Commerce and Finance, 7(2), 184–205.
Cwynar, A. (2020). Financial literacy, behaviour and well-being of millennials in poland compared to previous generations: The insights from three large-scale surveys. Review of Economic Perspectives, 20(3), 289–335. https://doi.org/10.2478/revecp-2020-0015
Dare, S. E., van Dijk, W. W., van Dijk, E., van Dillen, L. F., Gallucci, M., & Simonse, O. (2022a). How Executive Functioning and Financial Self-efficacy Predict Subjective Financial Well-Being via Positive Financial Behaviors. Journal of Family and Economic Issues, 44(2), 232–248. https://doi.org/10.1007/s10834-022-09845-0
Dare, S. E., van Dijk, W. W., van Dijk, E., van Dillen, L. F., Gallucci, M., & Simonse, O. (2022b). How Executive Functioning and Financial Self-efficacy Predict Subjective Financial Well-Being via Positive Financial Behaviors. Journal of Family and Economic Issues, 44(2), 232–248. https://doi.org/10.1007/s10834-022-09845-0
Farrell, L., Fry, T. R. L., & Risse, L. (2016). The significance of financial self-efficacy in explaining women’s personal finance behaviour. Journal of Economic Psychology, 54, 85–99. https://doi.org/10.1016/j.joep.2015.07.001
Garbinsky, E. N., Blanchard, S. J., & Kim, L. (2024a). Financial Mindfulness : A Scale. 2.
Garbinsky, E. N., Blanchard, S. J., & Kim, L. (2024b). Financial Mindfulness : A Scale. 2.
Hair, J. F., C, W., Babin, B. B. J., & Anderson, R. E. (2014). Multivariate Data Analysis. In Pearson New International (7th ed.). https://doi.org/10.4324/9781351269360
Hashmi, F., Aftab, H., Martins, J. M., Mata, M. N., Qureshi, H. A., Abreu, A., & Mata, P. N. (2021). The role of self-esteem, optimism, deliberative thinking and self-control in shaping the financial behavior and financial well-being of young adults. PLoS ONE, 16(9 September), 1–22. https://doi.org/10.1371/journal.pone.0256649
Hodgdon, B. T., & Wong, J. D. (2022). Family Caregivers’ Psychosocial Well-being in the Context of the Great Recession. International Journal of Aging and Human Development, 94(4), 478–495. https://doi.org/10.1177/00914150211037650
Hosseinzadeh, Z., Sayadi, M., & Orazani, N. (2021a). The Mediating Role of Mindfulness in the Relationship between Self-Efficacy and Early Maladaptive Schemas among University Students. Current Psychology, 40(12), 5888–5898. https://doi.org/10.1007/s12144-019-00487-4
Hosseinzadeh, Z., Sayadi, M., & Orazani, N. (2021b). The Mediating Role of Mindfulness in the Relationship between Self-Efficacy and Early Maladaptive Schemas among University Students. Current Psychology, 40(12), 5888–5898. https://doi.org/10.1007/s12144-019-00487-4
Hurtley, R. (2007). The sandwich generation. Journal of Dementia Care, 15(4), 16–17. https://doi.org/10.4324/9781351264044-18
Kumar, P., Pillai, R., Kumar, N., & Tabash, M. I. (2023). The interplay of skills, digital financial literacy, capability, and autonomy in financial decision making and well-being. Borsa Istanbul Review, 23(1), 169–183. https://doi.org/10.1016/j.bir.2022.09.012
Lone, U. M., & Bhat, S. A. (2024a). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. In Journal of Financial Services Marketing (Vol. 29, Issue 1, pp. 122–137). https://doi.org/10.1057/s41264-022-00183-8
Lone, U. M., & Bhat, S. A. (2024b). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. In Journal of Financial Services Marketing (Vol. 29, Issue 1, pp. 122–137). https://doi.org/10.1057/s41264-022-00183-8
Maheshwari, H. (2020a). Mindfulness: Helps Curb Impulsive Buying Through Improving Self Control. Journal of Modern Accounting and Auditing.
Maheshwari, H. (2020b). Mindfulness: Helps Curb Impulsive Buying Through Improving Self Control. Journal of Modern Accounting and Auditing.
Monzani, L., Escartín, J., Ceja, L., & Bakker, A. B. (2021a). Blending mindfulness practices and character strengths increases employee well-being: A second-order meta-analysis and a follow-up field experiment. In Human Resource Management Journal (Vol. 31, Issue 4, pp. 1025–1062). https://doi.org/10.1111/1748-8583.12360
Monzani, L., Escartín, J., Ceja, L., & Bakker, A. B. (2021b). Blending mindfulness practices and character strengths increases employee well-being: A second-order meta-analysis and a follow-up field experiment. In Human Resource Management Journal (Vol. 31, Issue 4, pp. 1025–1062). https://doi.org/10.1111/1748-8583.12360
Nanda, A. P., & Banerjee, R. (2021). Consumer’s subjective financial well-being: A systematic review and research agenda. International Journal of Consumer Studies, 45(4), 750–776. https://doi.org/10.1111/ijcs.12668
Netemeyer, R. G., Warmath, D., Fernandes, D., & Lynch, J. G. (2018). How Am i Doing? Perceived Financial Well-Being, Its Potential Antecedents, and Its Relation to Overall Well-Being. Journal of Consumer Research, 45(1), 68–89. https://doi.org/10.1093/jcr/ucx109
Njegovanović, A. (2023). Financial Evolution and Interdisciplinary Research. Financial Markets, Institutions and Risks, 7(1), 71–95. https://doi.org/10.21272/fmir.7(1).71-95.2023
Philippas, N. D., & Avdoulas, C. (2020). Financial literacy and financial well-being among generation-Z university students: Evidence from Greece. European Journal of Finance, 26(4–5), 360–381. https://doi.org/10.1080/1351847X.2019.1701512
Rothwell, D. W., Khan, M. N., & Cherney, K. (2016a). Building Financial Knowledge Is Not Enough: Financial Self-Efficacy as a Mediator in the Financial Capability of Low-Income Families. Journal of Community Practice, 24(4), 368–388. https://doi.org/10.1080/10705422.2016.1233162
Rothwell, D. W., Khan, M. N., & Cherney, K. (2016b). Building Financial Knowledge Is Not Enough: Financial Self-Efficacy as a Mediator in the Financial Capability of Low-Income Families. Journal of Community Practice, 24(4), 368–388. https://doi.org/10.1080/10705422.2016.1233162
Rydzik, M. F. (2016a). THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND MINDFULNESS: AN EXPLORATION OF THE ATTITUDES, BEHAVIOR, AND KNOWLEDGE OF STUDENTS AT A PRIVATE UNIVERSITY IN NEW ENGLAND AFTER COMPLETING THEIR FIRST YEAR IN COLLEGE. College of Professional Studies Northeastern University Boston, Massachusetts, 1–130.
Rydzik, M. F. (2016b). THE RELATIONSHIP BETWEEN FINANCIAL LITERACY AND MINDFULNESS: AN EXPLORATION OF THE ATTITUDES, BEHAVIOR, AND KNOWLEDGE OF STUDENTS AT A PRIVATE UNIVERSITY IN NEW ENGLAND AFTER COMPLETING THEIR FIRST YEAR IN COLLEGE. College of Professional Studies Northeastern University Boston, Massachusetts, 1–130.
Sabri, M. F., Wijekoon, R., & Rahim, H. A. (2020a). The influence of money attitude, financial practices, self-efficacy and emotion coping on employees’ financial well-being. Management Science Letters, 10(4), 889–900. https://doi.org/10.5267/j.msl.2019.10.007
Sabri, M. F., Wijekoon, R., & Rahim, H. A. (2020b). The influence of money attitude, financial practices, self-efficacy and emotion coping on employees’ financial well-being. Management Science Letters, 10(4), 889–900. https://doi.org/10.5267/j.msl.2019.10.007
Salignac, F., Hamilton, M., Noone, J., Marjolin, A., & Muir, K. (2020a). Conceptualizing Financial Wellbeing: An Ecological Life-Course Approach. In Journal of Happiness Studies (Vol. 21, Issue 5, pp. 1581–1602). https://doi.org/10.1007/s10902-019-00145-3
Salignac, F., Hamilton, M., Noone, J., Marjolin, A., & Muir, K. (2020b). Conceptualizing Financial Wellbeing: An Ecological Life-Course Approach. In Journal of Happiness Studies (Vol. 21, Issue 5, pp. 1581–1602). https://doi.org/10.1007/s10902-019-00145-3
Sehrawat, K., Vij, M., & Talan, G. (2021). Understanding the Path Toward Financial Well-Being: Evidence From India. Frontiers in Psychology, 12(July). https://doi.org/10.3389/fpsyg.2021.638408
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill Building Approach (7th ed.). John Wiley & Sons.
Sinha, N. K., Kumar, P., & Priyadarshi, P. (2021a). Relating mindfulness to financial well-being through materialism: evidence from India. International Journal of Bank Marketing, 39(5), 834–855. https://doi.org/10.1108/IJBM-07-2020-0375
Sinha, N. K., Kumar, P., & Priyadarshi, P. (2021b). Relating mindfulness to financial well-being through materialism: evidence from India. International Journal of Bank Marketing, 39(5), 834–855. https://doi.org/10.1108/IJBM-07-2020-0375
Stone, D. (2012a). Cultivating Financial Mindfulness: A Dual-Process Theory. Consumer Knowledge and Financial Decisions, 15–28. https://doi.org/10.1007/978-1-4614-0475-0
Stone, D. (2012b). Cultivating Financial Mindfulness: A Dual-Process Theory. Consumer Knowledge and Financial Decisions, 15–28. https://doi.org/10.1007/978-1-4614-0475-0
Stone, D. (2014a). What is a Functional Relationship Money and Possessions? In M. Gagné (Ed.), The Oxford Handbook of Work Engagement, Motivation, and Self-Determination Theory (pp. 374–385). Oxford University Press.
Stone, D. (2014b). What is a Functional Relationship Money and Possessions? In M. Gagné (Ed.), The Oxford Handbook of Work Engagement, Motivation, and Self-Determination Theory (pp. 374–385). Oxford University Press.
Syufa’at, Zaidi, S. M. S., & Mutholaah. (2023a). Sandwich Generation in Contemporary Indonesia: Determining Responsibility in Caring for Elderly under Islamic Law and Positive Law. Al-Manahij: Jurnal Kajian Hukum Islam, 17(2), 167–181. https://doi.org/10.24090/mnh.v17i2.9371
Syufa’at, Zaidi, S. M. S., & Mutholaah. (2023b). Sandwich Generation in Contemporary Indonesia: Determining Responsibility in Caring for Elderly under Islamic Law and Positive Law. Al-Manahij: Jurnal Kajian Hukum Islam, 17(2), 167–181. https://doi.org/10.24090/mnh.v17i2.9371
Tang, N. (2021). Cognitive abilities, self-efficacy, and financial behavior. Journal of Economic Psychology, 87(September), 102447. https://doi.org/10.1016/j.joep.2021.102447
Williamson, A. (2023). DEG R E E P RO JE C T Characterisation of an Additively Manufactured Self Sensing Material Using Carbon Fibre Sensors.
Wu, X., Huang, S. Z., & Lakkanawanit, P. (2024a). Mindfulness and financial well-being: multiple mediation of intrinsic career goals and work need satisfaction. Current Psychology, 43(10), 9041–9053. https://doi.org/10.1007/s12144-023-05085-z
Wu, X., Huang, S. Z., & Lakkanawanit, P. (2024b). Mindfulness and financial well-being: multiple mediation of intrinsic career goals and work need satisfaction. Current Psychology, 43(10), 9041–9053. https://doi.org/10.1007/s12144-023-05085-z
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Yuyun Karystin Meilisa Suade, Wirawan Endro Dwi Radianto, Murpin Josua Sembiring (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the full copyright of their published articles. By submitting and publishing their work, authors grant Vifada Management and Social Sciences the right of first publication. All published articles are simultaneously licensed under the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided that the original author(s) and the initial publication in this journal are properly acknowledged.
