https://doi.org/10.1016/j.bir.2025.08.008

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Consumer Financial Anxiety During the COVID-19 Pandemic

Document Type

Article

Publication Date

12-2025

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.

Publication

Borsa Istanbul Review

Publisher

Elsevier

Volume

25

Pages

146-155

Department

College of Business and Management

Peer Reviewed

1

Publication History

Received 28 April 2025 | Revised 31 August 2025 | Accepted 31 August 2025 | Available online 1 September 2025 | Version of Record 20 November 2025 | Published in print December 2025 (Volume 25, Supplement 2)

Comments

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.

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