Abstract
The study aims to analyze overall life satisfaction (OLS) and the financial well-being (FWB) of low income individuals by investigating 595 beneficiaries of the Bolsa Família Program through a questionnaire. The data analysis includes descriptive statistics, structural equation modeling, and clustering. The main results show that the people in this sample are satisfied overall with life, but are worried about and feel uncomfortable with the amount they owe, which lowers FWB. Confirming this result, the most representative cluster is made up of beneficiaries with high OLS and low FWB, who have precarious financial conditions, past due accounts and negative credit records as well as budget constraints that mean they cannot accumulate savings and cannot afford extra consumption.
Keywords:
overall life satisfaction; financial well-being; Bolsa Família Program; low income; financial management.
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Note: * p < 0.01. ¹ value of z was not calculated, where the parameter was fixed at 1, due to the demands of the model. Source: Prepared by the authors based on the study’s results.