Does Consumer Financial Management Behavior Relate to Their Financial Access?

Financial management behavior and financial access are important to overall financial well-being, yet have not been well studied. This study contributes to the literature of financial access and financial management behavior by empirically exploring relevant factors for each and the relationship between them. The data are derived from the 2012 and 2015 National Financial Capacity Study. Exploratory factor analysis (EFA) was applied to derive the factors relevant for consumer financial access and consumer financial management behaviors. Confirmatory factor analysis (CFA) was applied to establish reliability and construct validity of the identified factors. The structural equation modeling and linear regression were jointly used to examine the relationship between them. Results suggest that consumer financial access consists of a nine-element structure: savings accounts, checking accounts, retirement accounts, retirement plans, emergency funds, homeownership, investments, credit, and health insurance. Financial management behavior consists of a five-element structure: consumption, cash management, emergency savings, small-dollar consumer loans, and credit management. Financial management behavior is significantly associated with financial access. Better consumer financial management behavior is associated with better financial access. Policy implications are discussed.