International Journal of Human Ecology

The Korean Home Economics Association (대한가정학회)
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Financial Check-up: What Determines the Boomers' Financial Well-Being?

  • Baek, Eun-Young (School of Economics, Sungkyunkwan University) ;
  • Bae, Mi-Kyeong (Department of Consumer Information Science, Keimyung University)
  • Published : 2004.06.01
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Abstract

The purpose of the study was to examine the determinants of financial well-being of the baby boomers. With data on 1,789 households from the 1998 Survey of Consumer Finances, the study provided a profile of baby boomers using demands, resources, financial attitudes, and financial practices. The descriptive statistics showed that 18% of the baby boomers were financially well off showing that they met the guidelines for two financial ratios: liquidity and solvency ratio. The results of logistic analysis on the measures of financial well-being revealed that financial management practices played an important role in predicting boomer's financial well-being. This suggested a positive approach of financial education to the baby boomers to help them manage their current finance well as well as prepare for their retirement.

Keywords

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