The Moderating Effect of Age on the Relationship Between Mental Health and Economic Decision-Making

Abstract

The interconnectedness of human cognitive power and economic decision making is a proven spectacle. Different psychological factors of a healthy mind are key in sensible economic decision making, with relevance to SDG 3 (Good Health and Wellbeing) and SDG 8 (Decent Work and Economic Growth). To assess the moderation effect of age on the relationship between mental health and economic decision making, hypothetically affecting decisions at different age groups. A total of 606 surveys were filled by different age groups. The hypothesis was tested using XGBoost, a robust machine learning model. Supplementary analytics composed the variables for mental health and economic decision making. The impact of mental health on economic decision making was modeled with interaction by age. The relationship is significantly proven, with a high influence of age indicating a strong moderating effect across age groups. Age-specific interventions are necessary. Designing and implementation of mental health and financial education programs tailoring different age groups are recommended, contributing to reducing inequalities (SDG 10) while advancing SDG 3 and SDG 8 and informing policy and practice