Microsoft Word Ed Horwitz Post Dissertation Fina docx

 Literature Review 
 Theoretical Framework and Hypothesis 
The framework utilized for financial well-being is represented by Huston’s (2010) model 
(Figure 3.1). Huston (2010) conceptualizes financial literacy as having the two distinct 
dimensions of understanding and use. Understanding is represented within the model as financial 
knowledge of personal finance, and use is represented by personal financial skills. Financial 
literacy is therefore defined within the model by measuring how well an individual can 
understand and apply personal financial knowledge. These constructs are seen within the model 
as part of an individual’s human capital (Becker, 1964). Higher levels of financial literacy lead to 
improved financial behavior and decisions, ultimately leading to higher levels of financial well-
being.   
Figure 3.1 Relations among Financial Literacy, Knowledge, Education, Behavior, and