The Influence of Parental Financial Socialization on Youth’s Financial Behavior: Evidence from Ghana

2013 ◽  
Vol 35 (3) ◽  
pp. 376-389 ◽  
Author(s):  
Gina A. N. Chowa ◽  
Mathieu R. Despard
Keyword(s):  
Financial Behavior ◽  
Financial Socialization ◽  
Parental Financial Socialization

Talking money at home: the value of family financial socialization

2020 ◽  
Vol 38 (7) ◽  
pp. 1617-1634
Author(s):  
Haidong Zhao ◽  
Lini Zhang
Keyword(s):  
Financial Literacy ◽  
Well Being ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
Content Type ◽  
Financial Outcomes ◽  
The Family ◽  
Parental Financial Socialization ◽  
At Home

PurposeThe objective of this study was to empirically examine how family financial socialization affects individuals' financial outcomes, including financial literacy, financial behavior and financial well-being, based on the family financial socialization theory (FFST).Design/methodology/approachUsing a national representative sample of 6,311 US respondents from the 2016 National Financial Well-Being Survey, structural equation modeling (SEM) was conducted to test the hypotheses in this study. Sampling weights were incorporated into the structural model using the maximum likelihood estimation with robust standard errors and a Satorra-Bentler scaled test statistic (MLM estimation).FindingsThis study concludes the effectiveness of family financial socialization by showing that parental financial socialization has significant positive impacts on financial literacy, financial behavior and financial well-being. In addition, parents' education can significantly influence the quality of parental financial socialization.Practical implicationsThe result underscores the importance of financial socialization in the family context and encourages parents to discuss financial matters with their children at home. Detailed implications have been provided to financial educators, practitioners and policymakers to incorporate parental involvement in the design of financial education programs, as well as financial services providers to improve marketing strategies for their banking services.Originality/valueThis research is amongst the first to empirically explore the relationships among parental financial socialization, financial literacy, financial behavior and financial well-being based on the FFST. The study also contributes to the literature by confirming the effects of parental socialization received in childhood on adults' later financial outcomes.

scholarly journals Analysis of Factors Affecting Financial Well Being Millennial Generation in Batam

2020 ◽  
Vol 2 (1) ◽  
pp. 33
Author(s):  
Yandi Suprapto
Keyword(s):  
Financial Literacy ◽  
Millennial Generation ◽  
Negative Relationship ◽  
Financial Stress ◽  
Well Being ◽  
Financial Behavior ◽  
Financial Socialization ◽  
Factors Affecting ◽  
The People ◽  
Socialization Agents

The purpose of this study is to determine whether financial behavior, financial socialization agents, financial attitude,  financial stress, and financial literacy can influence financial well being in millennial generation in Batam City. Financial well being is described when a person is able to prosper in the field of financial finance. Welfare is reflected in the ability to meet and manage all needs and desires. While millennial is the most current generation so that it can be a hope and reflection of a country. This research method begins with the distribution of questionnaires to the people of Batam city aged 15-19 years. Data were collected as many as 300 respondents then processed with multiple regression research models using SPSS. Variable financial literacy, financial attitude and financial socialization agents provide a significant positive relationship to financial well being. Meanwhile financial stress has a significant negative relationship with financial well being. Then for financial behavior variables show no significant relationship to financial well being.

scholarly journals Institutes of Financial Socialization of Russian Students

2021 ◽  
Vol 13 (4) ◽  
pp. 126-139
Author(s):  
Marina Malkina ◽  
◽  
Dmitry Rogachev ◽  
Keyword(s):  
Young People ◽  
Unethical Behavior ◽  
Risk Preference ◽  
Well Being ◽  
Financial Behavior ◽  
Financial Socialization ◽  
Financial Independence ◽  
Financial Situation ◽  
Low Level ◽  
The Impact

The paper examines the factors influencing the financial socialization of Russian students. It provides an overview of research on the impact of family institutions (parental household), financial independence, and the maturity of financial behavior on the financial socialization of young people. We analyze the relationships between basic socio-demographic characteristics of Russian students (gender, age, marital status), their behavioral characteristics (risk preference, propensity for offense or unethical behavior, prodigality, credulity), and socio-economic characteristics (level of financial status, financial independence, financial maturity). The empirical part of the study is based on the data of the author's survey of 1291 students from 17 Russian universities, processed by methods of statistical, correlation, and econometric analysis. To assess the level of financial well-being, we develop an original methodology where the financial situation shows the availability of goods and services that are unaffordable to most members of this group. Likewise, financial maturity is the students' proficiency in financial instruments poorly mastered by the majority of other respondents. The survey revealed a significant financial dependence of Russian students on their parents and their low level of financial maturity. We found an increased level of credulity and a low level of propensity for offense or unethical behavior; established positive correlation between the risk preference and the propensity for offense or unethical behavior, between the level of credulity and prodigality. We established that as financial dependence on parents gradually decreases, young people make more mature financial decisions, and their growing risk preference is replaced by a shift to more prudent financial practices. In groups where young people provide for themselves, their assessments of their financial situation rise sharply from a certain point, and the level of prodigality decreases. The constructed model of ordered logit regression showed a significant positive effect of age, marital and employment status, risk preference and level of financial maturity, as well as a significant negative effect of prodigality and credulity on financial independence of Russian students. The research results are applicable for the further development of theoretical and methodological approaches to the study of effective financial behavior of young people and the management of student financial socialization processes.

scholarly journals Factors Affecting Financial Literacy and Financial Behaviour of Investors in Pakistan

2020 ◽  
Vol 1 (3) ◽  
pp. 80-90
Author(s):  
Muhammad Junaid Khan ◽  
Dr. Faheem Aslam ◽  
Syed Nisar-Ul-Mulk
Keyword(s):  
Cognitive Ability ◽  
Financial Literacy ◽  
Self Efficacy ◽  
Structural Equation ◽  
Research Study ◽  
Positive Impact ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
The Impact

The main purpose of our study is to find out the impact of financial socialization, cognitive ability, and self-efficacy on financial literacy and financial behavior of investors in Pakistan. This study has used a non-probability convenience-based sampling technique for collecting the data. A total of 429 individual investors were analyzed with the help of structural equation modeling (SEM) through Smart PLS. The results of our research study suggested that the participation of female investors as compare to male investors is very low. The main results of the study showed that cognitive ability and self-efficacy have a significantly positive impact on financial literacy, but an insignificant impact of these two variables on financial behavior was found. Findings also suggested that the influence of financial socialization on financial literacy is insignificant, while financial behavior is positively influenced by financial socialization and financial literacy. In mediating analysis cognitive ability and self-efficacy have positively affected financial behavior, while financial socialization has an insignificant effect on financial behavior through financial literacy. This research study provides important implications for researchers and other policymakers. Policymakers can formulate policies regarding trainings to improve the financial literacy of investors. Researcher can further investigate these variables for other segments of the society.

Family financial socialization, financial information seeking behavior and financial literacy among youth

2020 ◽  
Vol 12 (2) ◽  
pp. 163-181
Author(s):  
Saeed Pahlevan Sharif ◽  
Navaz Naghavi
Keyword(s):  
Financial Literacy ◽  
Information Seeking ◽  
Risk Information ◽  
Financial Information ◽  
Financial Behavior ◽  
Information Seeking Behavior ◽  
Financial Socialization ◽  
Content Type ◽  
Seeking Behavior ◽  
And Behavior

PurposeThis study examined the relationship between financial information seeking behavior and financial literacy, as well as the relationship between parents' teaching and behavior with financial information seeking behavior through the factors of the risk information seeking and processing model among youth.Design/methodology/approachA sample of 802 tertiary education students participated in this cross-sectional study. Using covariance-based structural equation modeling, the model was assessed and hypotheses were tested.FindingsThe results revealed that financial information seeking behavior contributed to youth's financial literacy. While parents' sound financial behavior was directly related to seeking financial information, both parents' financial teaching and behavior indirectly, through the risk information seeking process, encouraged youth to actively seek for financial information. Moreover, parents' financial socialization directly and also indirectly through the risk information seeking and processing model explained youth's financial information avoidance. Among the two parts of the risk information seeking and processing model, planned behavior factors played a more salient role than cognitive need for financial information.Originality/valueThis study extends the risk information seeking and processing model by integrating family financial socialization to the model and applies it in the context of consumers' financial behavior. The results improve our understanding of the social and psychological mechanism that drives consumers' financial literacy and decision-making.

Healthy Financial Behaviors and Financial Satisfaction in Emerging Adulthood: A Parental Socialization Perspective

2019 ◽  
Vol 8 (6) ◽  
pp. 548-554 ◽  
Author(s):  
Lavinia E. Damian ◽  
Oana Negru-Subtirica ◽  
Iulia M. Domocus ◽  
Mihaela Friedlmeier
Keyword(s):  
Emerging Adults ◽  
Cultural Context ◽  
Cross Sectional Study ◽  
Communist Country ◽  
Parental Socialization ◽  
Financial Satisfaction ◽  
Financial Socialization ◽  
Cross Sectional ◽  
Financial Behaviors ◽  
Parental Financial Socialization

To understand the relation between financial behaviors and satisfaction in emerging adults (EAs) and parental financial socialization, we conducted a cross-sectional study focusing on families from a collectivistic, former communist country, Romania, a cultural context marked by extreme financial dependence of youth on their parents. Participants were 143 parent–EAs child dyads from Romania (83% mothers, M age = 47.5 years and 80% girls, M age = 20.7 years). Results showed significant relations between parents’ and EAs’ view on parental financial socialization. EAs’ healthy financial behaviors were predicted by previous healthy financial behaviors in parents and previous parental financial monitoring of spending habits, only as reported by EAs. Moreover, EAs’ financial satisfaction was predicted by high socioeconomic status, previous healthy financial behaviors in parents, and current healthy financial relationship with parents, only as reported by EAs. We discuss the implications for supporting healthy financial behaviors and satisfaction in EAs.

Parental Financial Socialization: Is Too Much Help Leading to Debt Ignorance among College Students?

2019 ◽  
Vol 48 (2) ◽  
pp. 149-164 ◽  
Author(s):  
Jodi C. Letkiewicz ◽  
HanNa Lim ◽  
Stuart J. Heckman ◽  
Catherine P. Montalto
Keyword(s):  
College Students ◽  
Financial Socialization ◽  
Parental Financial Socialization

Impact of Financial Attitude, Financial Literacy and Parental Financial Socialization on Prudent Financial Management Practices: A Moderating Effect of Financial Well-Being among the Youth of Pakistan

2021 ◽  
pp. 14-33
Author(s):  
Syed Hamza Farooq ◽  
Syed Zulfiqar Ali Shah ◽  
Shahid Rasheed
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Management Practices ◽  
Well Being ◽  
Moderating Effect ◽  
Financial Socialization ◽  
Market Place ◽  
Online Questionnaire ◽  
Parental Financial Socialization ◽  
The Right

This study intends to explore the effect of Financial Attitude, Financial Literacy, and ParentalFinancial Socialization on the prudent financial management practices, amid the youth of Pakistan with moderating effect of Financial Well-Being. The population consist over the youth of Pakistan for which the data was collected through an online questionnaire. The study adopted the quantitative approach for which the data from 450 respondents was collected. Subsequently, the data was analyzed with the help of Smart PLS. The results indicated that Parental Financial Socialization, Financial Attitude, and Financial Literacy have a significant and positive relationship with Prudent Financial Management Practices. However, Financial Well-Being does not have significant moderating effect with Parental Financial Socialization, Financial Literacy, and FinancialAttitude. The results further highlighted serious concerns of the effectiveness of Financial Well-Being towards improving youth capabilities in managing their financial affairs in the marketprudently. It shows that challenges faced by the youth in the country market to strengthen thefinancial well-being of an individual by guiding them thoroughly, enhance the effectiveness, andencompass the right elements pertains to financial well-being to ensure today's young Pakistaniability to apply that in the real market place and have full financial freedom Keywords: Financial Attitude, Parental Financial Socialization, Financial Literacy, Prudent FinancialManagement Practices, Financial Well-Being

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