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Time Preferences, Financial Self‐Efficacy, and Financial Literacy: Relationships With Financial Well‐Being Indicators

Jennifer Coats & Vickie L. Bajtelsmit

Financial Planning Review2026https://doi.org/10.1002/cfp2.70022article
ABDC B
Weight
0.50

Abstract

This study investigates the relationships between individual preferences, personality traits, abilities, and multiple indicators of financial well‐being (FWB). Employing survey data from the Understanding America Study (UAS), we analyze FWB across its different dimensions, including a composite scale, single‐item perceptions of FWB, objective outcomes indicative of FWB, and positive financial behaviors. Logistic and OLS regression results show that time preferences, financial self‐efficacy, and financial literacy are significantly related to many different FWB indicators. Analysis of interaction effects reveals that financial literacy has an important amplifying role in relation to the individual discount rate, financial self‐efficacy, and income. This study provides insights into how financial planning practitioners can incorporate their clients' time preferences, confidence, and financial literacy into individualized strategies to help them reach their financial goals.

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https://doi.org/https://doi.org/10.1002/cfp2.70022

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@article{jennifer2026,
  title        = {{Time Preferences, Financial Self‐Efficacy, and Financial Literacy: Relationships With Financial Well‐Being Indicators}},
  author       = {Jennifer Coats & Vickie L. Bajtelsmit},
  journal      = {Financial Planning Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1002/cfp2.70022},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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