Modeling the dynamic interplay between financial literacy, resilience, and emotional well-being across diverse demographics

This study examines the relationship between financial literacy, resilience, and emotional well-being through three key hypotheses. The Resilience Buffer Hypothesis is supported, with mediation analysis indicating that financial resilience is statistically associated with mediating the relationship of financial literacy on emotional well-being. The Socioeconomic Amplification Hypothesis is confirmed by findings that financial literacy has a stronger positive impact on low-income individuals’ well-being than on high-income individuals. The Gender Financial Confidence Gap Hypothesis is also supported, as women’s lower financial engagement is attributed to confidence deficits rather than knowledge gaps. The research employs structural equation modeling and regression analysis on a nationally representative dataset, revealing that financial literacy’s benefits are significantly moderated by individual resilience, socioeconomic status, and gender-based confidence levels. The study’s findings highlight the need for financial education programs that integrate resilience training, address socioeconomic disparities, and include confidence-building interventions for women to holistically enhance financial well-being across diverse demographics.