Enhancing Life Satisfaction Through Problem-Solving: The Mediating Impact of Financial Strain and Moderating Roles of Economic Hope and Education

Abstract

This study examines the relationships among problem-solving (PS), perceived financial strain (PFS), economic hope (EH), education (ED), and life satisfaction (LS) across 32 countries with varying income levels, using data from 57,545 respondents. A moderated mediation model tests five hypotheses regarding their direct, mediating, and moderating effects. The findings show that problem-solving positively predicts life satisfaction (b = 0.371, p < .001), with financial strain serving as a mediator in this relationship, resulting in a significant indirect effect (b = -0.051, p < .001). Economic hope and education moderate these relationships, though their effects vary across high-income, upper-middle-income, and lower-middle-income countries. The study emphasizes the importance of problem-solving in improving life satisfaction, with economic hope and education as key buffers against financial strain. These results have important implications for policymakers, economic analysts, organizational leaders and managers, and educators. They advocate for solutions that enhance problem-solving skills, foster economic hope, and improve access to education to alleviate financial strain and promote global well-being.