The financial management behavior scale: Development and validation

Jeffery Dew, Utah State University
Jing Jian Xiao, University of Rhode Island


Although research on financial management behavior is common, few financial management behavior scales exist that are simultaneously multi-dimensional, psychometrically validated, and validated using nationally representative data. Using data from a nationally representative sample of adults, this study developed and examined the psychometric properties of a new scale of financial management behaviors. The Financial Management Behavior Scale (FMBS) displayed adequate reliability (alpha = .81). The FMBS was highly associated with other measures of financial management behaviors and was predictive of participants' actual levels of savings and consumer debt. These findings suggest that the full FMBS is a reliable and valid measure of financial management behaviors, though the subscales need refinement. © 2011 Association for Financial Counseling and Planning Education®. All rights of reproduction in any form reserved.