Abstract Book of the 10th International Conference on Research in Management and Economics
Year: 2025
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The Consequences of Poor Financial Behaviours: A Qualitative Study
Dr. Tania Morris, Vicky Thérien
ABSTRACT:
The objective of this qualitative study is to examine the consequences of poor financial behaviours on individuals. The research aimed not only to document the financial outcomes of such behaviours, but also to explore their deeper emotional and relational impacts, dimensions often overlooked in public discourse and educational initiatives. To achieve this, 44 semi-structured interviews were conducted with two distinct groups: financial professionals (e.g., advisors, bankers, insurers) and individuals with diverse financial experiences. Thematic analysis revealed three major dimensions of impact: financial, psychological, and social. The results show that poor financial behaviours lead to a wide range of adverse consequences. Psychologically, participants reported chronic stress, anxiety, insomnia, emotional exhaustion, and symptoms of burnout. Many also expressed feelings of guilt, shame, and powerlessness. Socially, financial mismanagement was associated with increased dependence on family members, marital conflicts, reduced social engagement, and a loss of professional credibility. Financially, poor behaviour resulted in recurring debt, erosion of long-term assets, inability to save, and the postponement of retirement. These findings demonstrate that the consequences of financial behaviours extend far beyond economic measures: they affect physical and mental health, personal identity, autonomy, and relational stability. They offer a critical educational foundation for raising young people’s awareness about how financial management directly shapes their overall well-being, both in the short and long term. For policymakers, educators, and financial institutions, the results underscore the urgent need for coordinated action. Indeed, such initiatives may play a vital role in preventing the long-term psychological, social, and financial harm associated with poor financial decision-making.
Keywords: consequences of poor financial behaviour, financial behaviour, financial consequences, psychological consequences, social consequences