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Abstract
U.S. households vary dramatically in their financial well-being. Numerous studies demonstrate the impact of resources (e.g., income and savings), knowledge, and behaviors in a given households financial outcomes. Extant literature tends to focus on individual financial and psychological factors with relatively little focus on the social context in which the household resides. As a consequence, the literature is often prescriptive in the way it addresses sub-optimal financial decision-making as it relates to low-income households. Social capital, associated with notions of trust, the exchange of information, and the upholding of explicit and implicit social contracts, is one sociological factor found to have relationships with household outcomes and well-being in other domains such as health. Trust, dissemination of information, and social contracts have also been explored in the literature from the lens of bonding, bridging and linking capital. Bonding, bridging and liking capital represent the types of relationships a household has with various members of its community. Some studies suggest that social capital in general or the diversity of social networks (e.g. bonding, bridging and linking capital) varies across poverty level status and may explain favorable life outcomes or a households ability to navigate financial hardship. No study was found that examines the role of social capital in financial well-being across federal poverty level status or how it might influence the relationships between financial knowledge, skill, attitudes and well-being. Using data from the 2016 Consumer Financial Protection Bureau (CFPB) Financial Well-Being Survey, this dissertation will explore the use of social capital (i.e., bonding, bridging and linking capital) to explain variation in financial well-being within a federal poverty level controlling for financial knowledge, financial skill, and financial attitudes. Findings from this study demonstrate the importance of social networks, in maintaining financial well-being, for households above 200% of the federal poverty level status. Social capital did not have a significant impact on the financial well-being of households below 200% of the federal poverty level.