Convenience over functionality

: the impact of anxiety on consumer financial decision-making behaviors in university students

Abstract

In recent decades, growing attention has been paid to the role of emotions in financial decisionmaking. Anxiety, in particular, has emerged as a significant factor influencing consumer spending behaviors. Using a survey-based methodology, in this thesis I examine the impact of state anxiety and financial anxiety on convenience-seeking spending among university students and explore how financial anxiety influences the relationship between state anxiety and spending behaviors. The findings of this dissertation demonstrate that state anxiety increases convenience-seeking spending while reducing functional spending, with financial anxiety showing an even stronger influence. An exploratory mediation analysis further reveals that financial anxiety mediates the relationship between state anxiety and convenience-seeking spending, highlighting its role as a key mechanism linking broader emotional states to financial behaviors. Consequently, this thesis contributes to a better understanding of the relationship between anxiety and consumer financial decision-making, distinguishing the effects of state and financial anxiety on specific spending patterns. By addressing these dynamics, this research provides a foundation for future studies and interventions to mitigate anxiety-driven financial behaviors and support more informed decision-making.

Date of Award	6 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Cristina Soares Pacheco Mendonça (Supervisor)