Financial well-being in basic income experiment

Abstract

In recent decades, subjective dimensions of well-being have gained interest. This chapter examines how the treatment and control groups of the Finnish basic income experiment differ in their experience of subjective financial well-being. Financial well-being can be defined by the subjective evaluation of the present financial situation and future expectations. The subjective experience of financial stress, current financial management, evaluation of the capability to make rational financial decisions (financial freedom), and preparedness in terms of financial emergency funds (securing future) were measured in a survey conducted in autumn 2018. We analysed the difference in the experienced financial situation and subjective financial well-being between the treatment and control groups. We found that in all aspects of subjective financial well-being, the basic income recipients reported a higher financial well-being and better financial situation than those in the control group; however, in terms of stress and financial management, the differences were more subtle.