Consumer Financial Anxiety During the COVID-19 Pandemic

Wei Feng; David Spohn; Lianfen Qian; Mohammad Kabir Hassan

doi:10.1016/j.bir.2025.08.008

Consumer Financial Anxiety During the COVID-19 Pandemic

Wei Feng
, David Spohn
, Lianfen Qian
, Mohammad Kabir Hassan

Accounting, Finance, and Wealth Management

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines the determinants of consumer financial anxiety using data from the 2021 National Financial Capability Study (NFCS), which covers the COVID-19 pandemic. Using an ordinal logistic regression, we control for demographic variables and demonstrate that negative events, such as job loss and income reduction, significantly increase financial anxiety, whereas having precautionary savings substantially reduces it. Then, we use a partial least squares structural equation model (PLS-SEM) to study the impacts of financial literacy and financial practices on anxiety. Our findings reveal that, whereas financial literacy has a modest direct effect, positive financial behaviors, such as saving and budgeting, play a significantly greater role in alleviating financial anxiety. The empirical lessons from the study and the analytical framework that we propose extend to post- pandemic consumer financial well-being, with important implications for policy, education, and mental health interventions.

Original language	American English
Pages (from-to)	146-155
Number of pages	10
Journal	Borsa Istanbul Review
Volume	25
Early online date	Sep 1 2025
DOIs	https://doi.org/10.1016/j.bir.2025.08.008
State	Published - Dec 2025

Bibliographical note

Supplement 2

This article is part of a special issue entitled: Financial Literacy

Author Contribution Statement
The authors of the paper titled “Consumer Financial Anxiety during the COVID-19 Pandemic” include Wei Feng (WF), David Spohn (DS), Lianfen Qian (LQ) and Mohammad Kabir Hassan (MHK). The development of the paper followed the timeline below.
•
WF conceived the original idea.
•
WF and LQ developed the methodology.
•
WF collected data and performed the computations.
•
LQ reviewed and validated the empirical analysis.
•
WF and LQ invited DS to contribute to the background study and investigate the results.
•
WF, LQ, and DS worked on drafting the manuscript.
•
DS presented the research at a conference.
•
WF invited MKH to join and project for major revision. MKH contributed to methodology, analysis and policy discussions.
All authors provided critical feedback and helped shape the research, analysis and manuscript.

Publisher Copyright:
© 2025 Borsa İstanbul Anonim Şirketi

Article

Received 28 April 2025, Revised 31 August 2025, Accepted 31 August 2025, Available online 1 September 2025, Version of Record 20 November 2025.

ASJC Scopus Subject Areas

Finance
Economics and Econometrics

Keywords

Covid-19 pandemic
financial anxiety
Financial Industry Regulatory Authority (FINRA)
financial literacy
National Financial Capability Study (NFCS)
PLS-SEM

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.bir.2025.08.008License: CC BY

Cite this

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title = "Consumer Financial Anxiety During the COVID-19 Pandemic",

abstract = "This paper examines the determinants of consumer financial anxiety using data from the 2021 National Financial Capability Study (NFCS), which covers the COVID-19 pandemic. Using an ordinal logistic regression, we control for demographic variables and demonstrate that negative events, such as job loss and income reduction, significantly increase financial anxiety, whereas having precautionary savings substantially reduces it. Then, we use a partial least squares structural equation model (PLS-SEM) to study the impacts of financial literacy and financial practices on anxiety. Our findings reveal that, whereas financial literacy has a modest direct effect, positive financial behaviors, such as saving and budgeting, play a significantly greater role in alleviating financial anxiety. The empirical lessons from the study and the analytical framework that we propose extend to post- pandemic consumer financial well-being, with important implications for policy, education, and mental health interventions.",

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note = "Supplement 2 This article is part of a special issue entitled: Financial Literacy Author Contribution Statement The authors of the paper titled “Consumer Financial Anxiety during the COVID-19 Pandemic” include Wei Feng (WF), David Spohn (DS), Lianfen Qian (LQ) and Mohammad Kabir Hassan (MHK). The development of the paper followed the timeline below. • WF conceived the original idea. • WF and LQ developed the methodology. • WF collected data and performed the computations. • LQ reviewed and validated the empirical analysis. • WF and LQ invited DS to contribute to the background study and investigate the results. • WF, LQ, and DS worked on drafting the manuscript. • DS presented the research at a conference. • WF invited MKH to join and project for major revision. MKH contributed to methodology, analysis and policy discussions. All authors provided critical feedback and helped shape the research, analysis and manuscript. Publisher Copyright: {\textcopyright} 2025 Borsa İstanbul Anonim {\c S}irketi",

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Consumer Financial Anxiety During the COVID-19 Pandemic

Abstract

Bibliographical note

Article

ASJC Scopus Subject Areas

Keywords

UN SDGs

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Consumer Financial Anxiety through the Covid-19 Pandemic

Cite this