Financial anxiety as a pathway linking financial capability and financial well-being: a test of gender differences

Purpose The purpose of this study is twofold: (1) to test the mediating role of financial anxiety in the relationship between financial capability and financial well-being among US adults and (2) to assess whether these pathways differ across gender groups. Design/methodology/approach Using data from the 2021 National Financial Capability Study (NFCS), we analyzed the relationship between financial capability and financial well-being among US adults, with financial anxiety as a mediator, using structural equation modeling (SEM). Findings Results show that financial capability was negatively associated with financial anxiety and positively associated with financial well-being, both directly and indirectly. Financial anxiety was negatively associated with financial well-being, and its mediating role in the capability–well-being link was significant. A multi-group analysis revealed consistent gender patterns: men and women both experienced lower well-being when financial anxiety was high and greater well-being with higher capability. Notably, the mediating effect of financial anxiety was gender-invariant, showing no significant difference between men and women. Originality/value Historically, empirical evidence has suggested that women report higher levels of financial anxiety than men, often attributed to gender wage gaps, longer life expectancy, caregiving interruptions, and lower average financial confidence. This study asks a different question: rather than examining whether these documented gender differences in levels extend to the psychological mechanism linking financial capability to well-being, it tests the mechanism itself, and it finds that the mediating role of financial anxiety operates equivalently for men and women. This finding underscores the importance of distinguishing mean-level gender differences in financial constructs from differences in the structural processes connecting them, rather than assuming that documented disparities in levels necessarily translate into differences in mechanism. The finding also reinforces the need to move beyond knowledge- and behavior-only models of financial well-being by integrating emotional and psychological dimensions. Recognizing that the pathway from financial capability to well-being through financial anxiety is gender-invariant carries implications for theory, measurement, and intervention. These findings support financial education initiatives and policies that address emotional and psychological barriers to financial well-being for all individuals, rather than assuming gender-differentiated approaches are needed. As a result, societies could strengthen efforts to reduce financial anxiety and promote long-term financial security for men and women alike.