Squeezed but Empowered: The Influence of Financial Autonomy on Financial Well-Being through Financial Mindfulness among the Sandwich Generation
DOI:
https://doi.org/10.47747/fmiic.vi2.2963Abstract
This study investigates the influence of financial autonomy on financial well-being, with financial mindfulness serving as a mediating variable, among individuals categorized as part of the sandwich generation in Indonesia. This generation concurrently bears financial responsibilities for both older and younger family members, rendering autonomous and mindful financial management crucial to fostering financial well-being. Adopting a quantitative approach, the research employed a structured survey of 281 respondents from the sandwich generation across western, central, and eastern regions of Indonesia. Data were analyzed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) technique. The findings yielded four key insights. First, financial autonomy has a positive effect on financial well-being, indicating that individuals with greater independence in financial decision-making tend to achieve a higher sense of economic security. Second, financial mindfulness has a positive effect on financial well-being, underscoring its role as a psychological resource that supports individuals’ economic resilience and satisfaction. Third, financial autonomy has a positive effect on financial mindfulness, reflecting increased awareness, intentionality, and reflective control in managing finances. Fourth, financial mindfulness positively mediates the relationship between financial autonomy and financial well-being, reinforcing its function as a psychological mechanism that channels the benefits of autonomous financial behavior into improved financial outcomes. These findings provide both theoretical and practical implications for the development of behaviorally informed financial literacy programs. Such programs should integrate components that foster both autonomy and mindfulness as foundational elements in promoting sustainable financial well-being among members of the sandwich generation.
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