Individuals who struggle to regularly pay rent and are at risk of homelessness can use a supervised bank account provided by the Vienna Social Fund (FSW), Austria. The account secures the amount needed for rent and other essential payments before making the remaining balance available to the user. The present study examined whether using this account improves users' well-being, by supporting the basic psychological needs of autonomy, competence and relatedness in their financial matters. Self-determination and respectful treatment of social service users are generally regarded as important for their well-being. Qualitative evidence indicated that the supervised bank account is, overall, perceived very positively, despite restricting users' access to their money.
The study aimed to identify mechanisms of the supervised bank account that contribute to positive outcomes, including enhanced well-being, reduced stress, and lower financial anxiety, despite the restrictions it imposes on users' money.
An online survey was conducted among all users of the supervised bank account, recruiting 431 participants. The results showed that longer use duration of the account related to reduced stress in managing life and personal problems. With increasing use duration, competence satisfaction increased and competence frustration decreased, which in turn predicted higher well-being, lower perceived stress and lower financial anxiety. By contrast, autonomy and relatedness were not associated with use duration but remained significant predictors of well-being as expected.
Overall, despite restricting users' financial freedom, with longer use duration the account appeared to foster perceived competence in financial matters, which in turn contributed to improved well-being. While autonomy and relatedness still related to some well-being outcomes, their influence was independent of use duration.
This study examined a specific and often overlooked population, offering valuable insight into mechanisms supporting vulnerable individuals in finance management. By providing support structures, the bank account fosters financial competence, enhancing overall well-being.