Measurement Invariance and Societal-Level Correlates of Financial Stress Across 51 Societies

Experiences of financial stress adversely affect emotions, cognition, and behavior. This study evaluated the cross-societal validity of the five-item Psychological Inventory of Financial Stress (PIFS). Using multilevel confirmatory factor analysis (MCFA) across 51 societies, we examined whether the PIFS allows for meaningful cross-societal comparisons. Model-level tests did not fully support weak invariance. However, item-level score tests and minimal bias estimates indicated sufficient structural consistency of the scale. Strong invariance was achieved for one item, while bias estimates for the remaining items were negligible, supporting cautious cross-societal comparisons of financial stress. We further explored societal-level variation in financial stress. Approximately 10% of the variance in financial stress scores was attributable to societal-level differences. Financial stress was higher in societies experiencing greater inflation and lower in societies with higher GDP and household debt. Lower levels of financial stress were also associated with cultural values emphasizing affective and intellectual autonomy, individualism, and secularism. Additionally, financial stress was lower in societies with higher social welfare spending and stronger governance, including greater political stability, regulatory quality, and control of corruption. Together, these findings demonstrate the utility of the PIFS for cross-societal research and provide initial insights into how economic, cultural, and institutional contexts shape experiences of financial stress.