Multidimensional Financial Stress and Anxiety among Working Women: An Empirical Investigation of its Impact on Financial Well-Being in Delhi NCR

Abstract

Economic stability in modern economies has become a pressing issue, especially in working women who have to cope with the growing financial burden as well as socio-economic limitations. Although the previous studies have largely analysed financial well-being based on income and behavioural perspective, little focus has been made on the multidimensional concept of financial stress and its differentiated effects. The current study, as a way of filling this gap, examines the effects of cognitive financial strain, economic anxiety, and economic pressure on financial well-being of working women in urban India. A cross-sectional survey was conducted with 393 working women in Delhi National Capital Region (NCR). The proposed relationships were tested using the Partial Least Squares Structural Equation Modelling (PLS-SEM) and SmartPLS 4. The results show that the three levels of financial stress have a negative and significant impact on financial well-being. Economic pressure ranks as the best predictor of them, with cognitive financial strain coming next, and economic anxiety. Even though the effect sizes are with small p-values, the model shows moderate explanatory ability, which means that the financial well-being is influenced by the cumulative effect of numerous stress dimensions. The research makes a contribution to the literature by conceptualising anew financial stress as a multidimensional concept and empirically showing its divergent impacts on financial well-being. It also has context-specific information regarding the financial life of working women in an emerging economy, referring to the interaction of economic factors, cognitive factors and emotional factors. The results have significant policy implications to the policymakers, financial institutions, and organisations aiming at developing holistic financial well-being interventions.