scholarly journals The Influence of Financial Knowledge, Financial Socialization, Financial Behaviour, and Financial Strain on Young Adults’ Financial Well-Being

2021 ◽  
Vol 11 (12) ◽  
Author(s):  
Mohamad Fazli Sabri ◽  
Mervin Anthony ◽  
Rusitha Wijekoon ◽  
Siti Shazwani Ahmad Suhaimi ◽  
Husniyah Abdul Rahim ◽  
...  
Keyword(s):  
Young Adults ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Strain ◽  
Financial Socialization ◽  
Financial Behaviour

Childhood Financial Socialization and Debt-Related Financial Well-Being Indicators in Adulthood

2019 ◽  
Vol 30 (2) ◽  
pp. 213-230
Author(s):  
David Allen Ammerman ◽  
Cherie Stueve
Keyword(s):  
Positive Association ◽  
Household Survey ◽  
Well Being ◽  
Financial Knowledge ◽  
Financial Socialization ◽  
Potential Influence ◽  
Short Term ◽  
Current Ratio ◽  
Liquid Asset ◽  
A Current

The purpose of this study was to explore the potential influence of childhood financial socialization on financial well-being in adulthood. Using a sample (N = 2,213) from De Nederlandsche Bank Household Survey (DHS) we modeled the likelihood of household debt/asset ratio less than or equal to 40%, and the likelihood of a household reporting a current ratio (liquid asset /short-term debt ratio) greater than or equal to 100%. Consistent with predictions of social learning theory, being encouraged to save during childhood had a positive association with meeting the financial planning industry benchmarks for these financial ratios in adulthood. The key implication is that the path to financial well-being does not begin with financial knowledge attained in adulthood, but instead begins with experiential learning and socialization during childhood.

scholarly journals Financial citizenship as a broader democratic context of financial literacy

2020 ◽  
pp. 204717342094841
Author(s):  
Medhat Khalil
Keyword(s):  
Financial Literacy ◽  
Global Education ◽  
Well Being ◽  
Financial Knowledge ◽  
Future Generations ◽  
Modern World ◽  
World Population ◽  
Financial Socialization ◽  
Political Systems ◽  
Financial Decisions

Financial citizenship is crucial in our modern world. Financial citizenship is underpinned by the education of future generations so that they can understand both their local and global economies to make the best financial decisions concerning their lives. This paper discusses financial literacy, how it relates to individual citizens, and how it correlates with social, political and business spheres. According to current financial capability models, every individual’s financial well-being can be boosted by developing their financial knowledge and competency, which will improve their motivations and confidence. Societal constructs significantly create financial socialization, which increases our accessibility and engagements with institutions, businesses, political systems and society as a whole. Being educated about the details required for financial literacy is every human being’s right. Citizens have been characterized as being personally responsible, participatory or justice oriented; each person’s specific perspective can impact their financial lives, which supports the importance of the current concept of financial citizenship. Boosting global education about economic citizenship will help to reduce poverty, create more sustainable economic environments, and improve social outcomes and the life satisfaction of the world population. These concepts will be explored and discussed in this paper.

Financial literacy among youth

2018 ◽  
Vol 45 (1) ◽  
pp. 173-186 ◽  
Author(s):  
Neha Garg ◽  
Shveta Singh
Keyword(s):  
Marital Status ◽  
Financial Literacy ◽  
Empirical Studies ◽  
Demographic Factors ◽  
Well Being ◽  
Financial Knowledge ◽  
Content Type ◽  
The World ◽  
Literacy Level ◽  
Financial Behaviour

Purpose The purpose of this paper is to analyse the level of financial literacy among youth in the world based on previous studies. The study, particularly, focus at how socio-economic and demographic factors such as age, gender, marital status and income influence financial literacy level of youth and whether there is any interrelationship between financial knowledge, financial attitude and financial behaviour. Strong endeavour of the world economies to improve the financial well-being of their citizens has contributed to the rising importance of financial literacy as it equips the individuals to take quality financial decisions to enhance their financial well-being. Design/methodology/approach This literature review consists of seven key sections. The first section of this paper reviews the conceptual definitions of youth. Second part summarises the literature on financial literacy. Third, fourth and fifth section summarises the literature on the components of financial literacy, i.e. financial knowledge, financial attitude and financial behaviour, respectively. Sixth section reviews the empirical studies on the influence of socio-economic and demographic factors on financial literacy level. Seventh section summarises the literature on interrelationship between financial knowledge, financial attitude and financial behaviour. Findings The study reveals that the financial literacy level among youth is low across the most part of the world that has become a cause of concern. Also, it has been observed that various socio-economic and demographic factors such as age, gender, income, marital status and educational attainment influence the financial literacy level of youth and there exists an interrelationship between financial knowledge, financial attitude and financial behaviour. Originality/value Youth have to live a longer life ahead, thus, the decisions taken by them are going to affect them for a longer period of time, making it imperative for them to develop an understanding of the world of finance so as to avoid wrong choice of financial products. Thus, financial literacy is of significant relevance. This paper aims to understand the influence of various factors influencing the financial literacy as understanding the factors that contribute to or detract from the acquisition of financial literacy among youth can help in making policy interventions targeted at youth to enhance their financial well-being.

“Being Able to Support Yourself”: Young Adults’ Meaning of Financial Well-Being Through Family Financial Socialization

2018 ◽  
Vol 40 (2) ◽  
pp. 250-268 ◽  
Author(s):  
Jennifer K. Rea ◽  
Sharon M. Danes ◽  
Joyce Serido ◽  
Lynne M. Borden ◽  
Soyeon Shim
Keyword(s):  
Young Adults ◽  
Well Being ◽  
Financial Socialization

Determinants of Personal Financial Literacy among Young Adults in Malaysian Accounting Firms

2019 ◽  
Vol 7 (1) ◽  
pp. 8-19
Author(s):  
Aik Myin Loh ◽  
Kwee Kim Peong ◽  
Kwee Peng Peong
Keyword(s):  
Young Adults ◽  
Financial Literacy ◽  
Pearson Correlation ◽  
Geographical Location ◽  
Financial Education ◽  
Well Being ◽  
Jel Classification ◽  
Family Characteristics ◽  
Financial Knowledge ◽  
Accounting Firms

Objective - In the twenty-first century, financial competencies are an essential tool in understanding the connection between financial behaviour and knowledge of individual financial problems. High financial knowledge may encourage young adults to carry less debt, increase their wealth and have a better financial retirement plan. According to Wolla (2017), less than one-third of youths have basic financial knowledge. This will have an impact to their lifelong financial well-being. Hence, this research intends to explore the personal financial literacy of young adults in Malaysian accounting firms. Methodology/Technique – The study examines 150 young working adults between the ages of 18-35 years old, working in accounting firms in Malacca, Malaysia. Stratified sampling and convenience sampling techniques were used to distribute questionnaires. Descriptive statistics, Pearson correlation coefficient and multiple regression analyses were also employed. Findings - The empirical findings show that geographical locations and family characteristics are significantly related to the personal financial literacy of young adults in accounting firms in Malacca. However, financial education and financial experience do not influence young adults in their financial decision making. Novelty – The results of this study suggest that the relevant authority should take an appropriate action to improve the financial well-being of young adults in Malacca, Malaysia. Type of Paper: Empirical. JEL Classification: M40, M41, M49 Keywords: Financial Literacy; Financial Education; Financial Experience; Family Characteristics; Geographical Location.

Factors Mediating the Association Between Financial Socialization and Well-Being of Young Adults: Testing a Conceptual Framework

2021 ◽  
pp. JFCP-20-00056
Author(s):  
Lu Fan ◽  
Narang Park
Keyword(s):  
Young Adults ◽  
Conceptual Framework ◽  
Financial Management ◽  
Structural Equation ◽  
Well Being ◽  
Financial Behavior ◽  
Equation Modeling ◽  
Financial Socialization ◽  
Subjective Well Being ◽  
Management Behavior

This study establishes an integrated conceptual framework to examine the influences of financial socialization on young adults’ financial and subjective well-being. Using the National Financial Well-Being Survey and structural equation modeling methods with a national sample of young adults aged 18–35, this study highlights two key potential influences of financial socialization: (a) early financial socialization experience is directly and positively associated with young adults’ financial knowledge and financial motivations (goal-oriented financial planning and self-control ability) and (b) there are indirect and positive associations between financial socialization and young adults’ perceived financial skill, financial behavior, and financial and subjective well-being. Moreover, perceived financial skill significantly mediates the relationship between financial motivations and financial management behavior and could indirectly influence financial and subjective well-being. Finally, this study also finds positive associations among financial management behavior, financial well-being, and subjective well-being of young adults.

The well-being of young adults in the “Next America”.

2015 ◽  
Vol 85 (5, Suppl) ◽  
pp. S4-S13
Author(s):  
Paul Taylor
Keyword(s):  
Young Adults ◽  
Well Being
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