Exploring the Financial Wellbeing Landscape: An Exploratory Factor Analysis of Financial Satisfaction and Financial Stress

Abstract

Financial wellbeing is a key indicator of household economic resilience, yet empirical evidence from emerging
economies such as Indonesia remains limited. This study aims to examine the factor structure of financial satisfaction,
financial stress, and financial well-being and to explore how these constructs interact within the socio-economic
context of Cirebon City and Regency. Using a quantitative, cross-sectional survey of 270 adult respondents selected
through stratified random sampling, data were analyzed with Exploratory Factor Analysis (EFA) employing Principal
Axis Factoring (PAF) and Oblimin rotation. The results confirmed a three factor solution with strong statistical
support (Kaiser–Meyer–Olkin = 0.84, Bartlett's Test of Sphericity p < 0.001), explaining 75.4% of total variance.
Financial well-being emerged as the most dominant factor, while financial stress showed a significant negative
correlation with financial well-being (r = –0.54, p < 0.001), and financial satisfaction was validated as a single global
indicator. Urban respondents reported higher financial satisfaction and lower financial stress than rural counterparts.
These findings provide empirical evidence that financial satisfaction, financial stress, and financial well-being are
distinct yet interrelated constructs, extending the structural determinants framework to the Indonesian context and
offering practical insights for financial literacy programs, emergency-savings initiatives, and inclusive digital financial
services aimed at strengthening household financial resilience.