This paper investigates the role of dispositional optimism in shaping individuals' financial planning and money management behaviors. Drawing on a nationally representative CAWI survey of 2,064 Italian adults, the study integrates psychological and economic perspectives to explore how optimism—conceptualized as a generalized expectation of positive outcomes—relates to budgeting, planning, and self-perceived financial competence. Composite indices of optimism were constructed and analyzed using CUB (Combination of Uniform and shifted Binomial) models, which allow for nuanced treatment of ordinal data and self-reported assessments.
The findings reveal that higher levels of optimism are associated with more proactive and organized financial practices, including the adoption of planning tools, and greater confidence in money management. Optimism appears to act as a motivational resource that fosters future-oriented thinking, reduces the perceived burden of financial uncertainty, and enhances individuals' engagement with long-term financial goals. At the same time, the study acknowledges potential risks, as excessive optimism can encourage overconfidence and risk-seeking behaviors, echoing concerns in behavioral economics about the "double-edged" nature of optimistic outlooks.
By focusing on an Italian context, the research expands the geographic and cultural scope of existing studies, which have predominantly examined Anglo-Saxon populations. In Southern Europe, where informal support networks and economic volatility shape financial decision-making, optimism emerges as a particularly relevant psychological factor. The results suggest that financial capability should be understood not solely as a matter of knowledge or income, but also as a mindset shaped by psychological well-being.
The study contributes to interdisciplinary debates on financial behavior and offers practical implications: integrating optimism-enhancing strategies into financial education and policy may improve individuals' financial resilience. Promoting psychological resources alongside informational interventions could therefore represent a more holistic approach to fostering effective money management.