For many Hong Kong Chinese elderly, financial strain is quite a common occurrence. This study examines the moderating effect of life management strategies including selection, optimization, and compensation in the relationship between financial strain on life satisfaction. The data came from a survey of a representative community sample of 421 elderly respondents in Hong Kong. Using multiple regression models, the authors found that selection and optimization of life management strategies moderated the linkage between financial strain and life satisfaction even after controlling socio-demographic variables, but sense of control over finances did not. Findings suggest that life management strategies should be enhanced to protect older people under chronic financial strain from low level of life satisfaction