The framework
Figure 9 of the paper: every question, measure and check, from the outcome you want to explain to what you report.
You want to explain an outcome using a consumer finance measure. Is that outcome primarily appraisal-based or resource-based?
Appraisal-based outcomes require households to assess their own situation, for example affordability perceptions, financial hardship, perceived saving capacity, or retirement adequacy.
Measure subjective financial well-being
Measure Selection Check
Determine which aspect of subjective financial well-being (e.g., current stress, future security, overall satisfaction, perceived constraint) is most relevant to your research question, based on literature and theorizing.
Include a validated scale
Common Method Bias Check
Are both the scale and the outcome self-reported?
- Collect the scale and the outcome in separate survey waves where possible
- Consider varying response formats across measures
Unsure
Consider the mechanism: is the outcome more likely shaped by how households perceive and evaluate their financial situation, or by the level of financial resources available?
Perception or evaluation
Unclear, measure both
Resources
Where feasible, include both income and subjective financial well-being measures
Resource-based outcomes are determined more directly by resource levels and take a value independent of the respondent's judgment, for example expenditure, debt, or net wealth.
Measure income
Are (high-quality) administrative income data available?
Yes
No
Use observed household income
Do you have data on the income distribution in your population, for example census data?
Yes
No
Ask categorical income, anchored to your population
Ask continuous income, with a categorical fallback
Income Survey Design Check
Phrase the survey question so a respondent knows whether you are referring to:
- Personal or household income
- Income before or after tax
- Income including or excluding sources beyond wages, such as income from wealth
- The period: month or year
Reporting Check
Subjective financial well-being
- The specific scale or subscale and its source
- For a single item, the exact wording and response range
- Any deviation from the original instrument (e.g., a subset of items, translation, or an altered response format)
- Reliability in your sample (e.g., Cronbach's alpha)
Income
- Whether the measure is self-reported or observed
- The measurement level (e.g., individual or household)
- The definition used (e.g., income before or after tax, including or excluding income from wealth or other sources)
- The response type (categorical or continuous)
- The number and coverage of brackets if the response type is categorical, and (if applicable) the distribution and year they are anchored to
- How outliers are managed if the response type is continuous