Effects of Financial Therapy Program to Improve Financial Health for Over-Spenders

5 Pages Posted: 20 Sep 2018

See all articles by Sang-Hee Sohn

Sang-Hee Sohn

Seoul National University

Wonyeong Seo

Seoul National University

Min-Ji Park

Seoul National University

Jong Ok Park

Chungbuk National University

Date Written: September 14, 2018

Abstract

The purpose of this study was to develop a financial therapy program aimed at improving financial health for Korean consumers with overspending behavior and to evaluate its effectiveness. A group financial therapy program was designed to include both psychoeducation and financial literacy education and it consisted of 6 sessions of 4 steps. The program was provided once a week for a period of 4 weeks to 3 participants, and each meeting lasted 2.5 hours. To examine the effectiveness of the financial therapy program in modifying dysfunctional financial beliefs and behaviors, and thereby financial health of the participants, both the quantitative and qualitative methods were employed. The program was found to be effective in reducing financial anxiety and dysfunctional financial beliefs and in improving financial security, money skills confidence, financial management behavior, and thereby financial health. Further research is needed, however, to validate these findings because of the small sample size and a lack of a control group.

Keywords: financial therapy, dysfunctional financial behavior, dysfunctional financial beliefs, financial health, effectiveness evaluation

Suggested Citation

Sohn, Sang-Hee and Seo, Wonyeong and Park, Min-Ji and Park, Jong Ok, Effects of Financial Therapy Program to Improve Financial Health for Over-Spenders (September 14, 2018). 2019 Academic Research Colloquium for Financial Planning and Related Disciplines. Available at SSRN: https://ssrn.com/abstract=3249509 or http://dx.doi.org/10.2139/ssrn.3249509

Sang-Hee Sohn (Contact Author)

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Wonyeong Seo

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Min-Ji Park

Seoul National University ( email )

Kwanak-gu
Seoul, 151-742
Korea, Republic of (South Korea)

Jong Ok Park

Chungbuk National University ( email )

Chungbuk 361-763, Cheongju
Korea, Republic of (South Korea)

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