Financial resilience and life satisfaction of youth: the serial mediation of financial well-being and mental well-being

Purpose Young people are considered more prone to mental health problems, especially those living in lower-middle-income countries. Timely access to financial resources has always been argued as a vital factor in improving the well-being of individuals. The purpose of this research is to empirically investigate a nexus between financial resilience, mental health and well-being of the young. Design/methodology/approach After obtaining approval from the ethics review board, data for this research were collected from young Pakistanis aged between 17 and 29 years. Findings Findings show that mental well-being alone does not mediate the association between financial resilience and life satisfaction. Instead, both mental well-being and financial well-being serially mediate the association between financial resilience and life satisfaction. Practical implications In the context of Pakistan, where more than 60% of the population is aged below 30 years, these findings imply that access to bank accounts, credit opportunities and insurance needs to be increased for the young. Awareness related to financial products and services should also be enhanced along with increasing the social capital of the young. All these factors will strengthen the financial resilience of youth and relax their mind toward their financial worries. Social implications The findings of this study imply that societies with limited resources can improve the life satisfaction of youth by initiating affordable healthcare initiatives to look after mental health problems, raising financial well-being levels and using financial resilience as a critical buffer against financial stress. Originality/value This research is in line with the third sustainable development goal by the United Nations, which argues for ensuring healthy lives and promoting well-being of individuals. Unlike other studies, this research is the first to find that youth’s financial resilience, mental health and financial well-being are all significant factors in achieving their life satisfaction.