FINANCIAL WELL-BEING BEYOND INCOME: CROSS-CULTURAL VALIDATION OF A SUBJECTIVE FINANCIAL HEALTH SCALE USING GRADED RESPONSE MODELS IN COLOMBIA AND MEXICO

Abstract

This study aimed to adapt and validate a multidimensional subjective financial health scale in Colombia and Mexico by examining its internal structure, cross-country measurement invariance, and item parameters using item response theory. A CAWI survey was administered to 1,200 adults (600 per country). Content validity was supported by high interjudge agreement (weighted κ = .81). Exploratory factor analyses yielded interpretable subdimensions within each domain. Multigroup confirmatory factor analysis supported strict invariance across countries for all subscales. Items were calibrated using Samejima’s graded response model, showing adequate discrimination and ordered thresholds. A three-level hierarchical CFA supported a general financial health factor integrating anxiety, subjective well-being, financial literacy, and financial behaviors, with satisfactory convergent validity and composite reliability. The instrument is suitable for cross-national research and applied assessment of subjective financial health in Latin American middle-class contexts.