Financial Vulnerability in Households: Dissecting the Roots of Financial Instability
Digitalized payments; Financial capability; Financial socialization; Financial stress
The phenomenon of household financial vulnerability, defined by unexpected shocksin income and expenditures, carries major implications for both individual households and the overall economy of a nation. For a considerable time, household debt has been widely acknowledged as the primary determinant of household financial vulnerability. This study aims to extend the analysis beyond the scope of household debt. Middle-income households may experience financial difficulties when faced with unexpected changes in income and expenses. These challenges can arise from several circumstances, including the inability to engage in discretionary activities such as dining out or vacations. For a very long time, it has been posited that low-income households exclusively experience financial vulnerability. Hence, it is imperative to thoroughly examine the concept of household financial vulnerability and its underlying factors to enhance households' ability to withstand adversities and better clarify the matter. In light of the prevailing economic recession triggered by the global pandemic and the ongoing confrontation between Russia and Ukraine, the significance of the matter is further underscored. This study aims to comprehensively define household financial vulnerability and examine its relationship with financial capability, digitalized payments, financial stress, and financial socialization. The current study anticipates establishing a foundational framework for future research endeavors in this specific field. Moreover, this paper also explores potential avenues for future research. The Author(s), under exclusive license to Springer Nature Switzerland AG 2025.
Studies in Systems, Decision and Control;Volume;555;pp.339-350
Springer Science and Business Media Deutschland GmbH
Restricted Access; Hardcopy may be available in the library
https://doi.org/10.1007/978-3-031-67890-5_31 https://www.scopus.com/pages/publications/85210182412?origin=resultslist
Biju D.S., Department of Commerce, Christ (Deemed to be University), Bangalore, India; Tantia V., Department of Commerce, Christ (Deemed to be University), Bangalore, India