From Piggy Banks to Significant Others: Associations Between Financial Socialization and Romantic Relationship Flourishing in Emerging Adulthood

While a plethora of research has found that parent financial socialization during childhood and adolescence is linked with financial outcomes in emerging adulthood, recent literature suggests that financial socialization may also impact romantic relationship outcomes in emerging adulthood. Utilizing a sample of 1,950 U.S. emerging adults, we test whether retrospectively recalled parent financial socialization is associated with romantic relationship flourishing and whether this association is mediated by financial behaviors and financial distress. We found that financial socialization was positively associated with financial behaviors and relationship flourishing and was negatively associated with financial distress. Further, financial behaviors partially mediated the association between financial socialization and relationship flourishing, while financial distress did not mediate the association. Together with previous literature, these findings provide useful information for therapists and educators in their pursuit to promote robust parent financial socialization in childhood and adolescence and both financial and relational well-being in emerging adulthood.

Factors Affecting Financial Behaviors:

This study was conducted to determine the effect of financial knowledge, financial attitude, locus of control, risk tolerance, motivation, and mental accounting on financial behavior. The population was 168 students majoring in International Business Management at Universitas Ciputra Surabaya. The characteristics of the respondents are students who are in the 6th semester and above at the time of taking the sampling with purposive sampling method. The data obtained were analyzed using Partial Least Square (PLS). The result shows that the factors of financial knowledge, locus of control, motivation, have no effect on financial behavior. While the factors of financial attitude, risk tolerance, and mental accounting have an effect on financial behavior.

Artificial intelligence in customer-facing financial services: a systematic literature review and agenda for future research

PurposeThe objective of this study is to provide a systematic review of the literature on artificial intelligence (AI) in customer-facing financial services, providing an overview of explored contexts and research foci, identifying gaps in the literature and setting a comprehensive agenda for future research.Design/methodology/approachCombining database (i.e. Scopus, Web of Science, EBSCO, ScienceDirect) and manual journal search, the authors identify 90 articles published in Australian Business Deans Council (ABDC) journals for investigation, using the TCCM (Theory, Context, Characteristics and Methodology) framework.FindingsThe results indicate a split between data-driven and theory-driven research, with most studies either adopting an experimental research design focused on testing the accuracy and performance of AI algorithms to assist with credit scoring or investigating AI consumer adoption behaviors in a banking context. The authors call for more research building overarching theories or extending existing theoretical perspectives, such as actor networks. More empirical research is required, especially focusing on consumers' financial behaviors as well as the role of regulation, ethics and policy concerned with AI in financial service contexts, such as insurance or pensions.Research limitations/implicationsThe review focuses on AI in customer-facing financial services. Future work may want to investigate back-office and operations contexts.Originality/valueThe authors are the first to systematically synthesize the literature on the use of AI in customer-facing financial services, offering a valuable agenda for future research.

Struggling to make ends meet: can consumer financial behaviors improve?

PurposeThe purpose of the study is to examine the following two research objectives. The first was to examine the predictive relationships that consumer characteristics of financial literacy, thinking styles and self-control have with a consumer's financial behaviors. The second goal was to ascertain financial management products' ability to aid those consumers who need it the most by weakening the predictive effects of consumer traits on financial behaviors.Design/methodology/approachThe study employed a web-based survey to gather information. The measurement and structural models were analyzed using generalized structured component analysis (GSCA), a component-based structural equation model. The mediation effect of self-control is assessed using the GSCA. The conditional mediation of demographic variables and use of personal financial management products are evaluated using multi-group analysis (MGA) in GSCA.FindingsAntecedents, financial literacy, thinking styles and self-control consumer characteristics are predictors of financial behaviors. However, self-control plays a more prominent role as a mediator between the other variables, strengthening the overall relationship. Also, financial products can have a beneficial moderation effect assisting those consumers who need them the most.Practical implicationsThese insights help in creating target specific financial literacy strategies to influence consumers' financial behaviors. Also, there is a need to develop mechanisms to influence a consumer's self-control and thinking styles to improve financial behavior. In conjunction with other initiatives, the impact of financial literacy has a greater effect on financial behaviors. Further, the insights assist financial institutions and financial technology firms in offering and creating products to help customers make better financial decisions and improve their financial behaviors.Social implicationsThe research addressed a significant global issue – consumer financial health. The Great Recession and the COVID-19 recession highlight the need to focus on the consumer and efforts to improve their financial health.Originality/valueThis research highlighted the mediating role of self-control and suggested that existing and future financial products can positively influence consumer behavior drivers.

The effectiveness of a financial literacy and job-readiness curriculum for youth from low-income households

Intergenerational poverty and scarce financial resources can create and sustain detrimental behaviors and outcomes among adolescents. Efforts to increase financial literacy and job-related skills, however, can offer youth from low-income households knowledge, skills, and opportunities otherwise unavailable to them. Targeted interventions that combine financial literacy and job-readiness components may help adolescents disrupt the cycle of intergenerational poverty by increasing economic awareness, adaptive financial behaviors, and work-related skills. Drawing on career construction and asset theory, the present study examined changes in financial knowledge and labor skills among youth from low-income households (N = 111) over the course of their participation in the Road to Success curriculum as well as how changes varied across demographic characteristics of participants. Data analysis included descriptive statistics, t-test analyses, and MANCOVA. Results indicated several improvements from Wave 1 to Wave 2 as students developed job-readiness and financial literacy knowledge. Potential educational and policy implications are discussed.

Financial Knowledge, Confidence, and Sustainable Financial Behavior

This paper analyzes the effect of financial knowledge and confidence in shaping individual investment choices, sustainable debt behavior, and preferences for socially and environmentally responsible financial companies. Exploiting data from the “Italian Literacy and Financial Competence Survey” (IACOFI) carried out by the Bank of Italy in early 2020, we address potential endogeneity concerns in order to investigate the causal effect of objective financial knowledge on individual financial behaviors. To this aim, we perform endogenous probit regressions, using the respondent’s long-term planning attitude, the use of information and communication technology devices, and the financial knowledge of peers as additional instrumental variables. Our main empirical findings show that objective financial knowledge exerts a positive and significant effect on financial market participation and preferences for ethical financial companies. Moreover, we provide strong empirical evidence about the role of confidence biases on individual financial behaviors. In particular, overconfident individuals display a higher probability of making financial investments, experiencing losses due to investment fraud, and being over-indebted. Conversely, underconfident individuals exhibit suboptimal investment choices, but are less likely to engage in risky financial behaviors.

Moderating role of social capital on the effect of financial behavior on financial inclusion

The need for improved institutional interventions aimed at increasing access to financial services by small and medium enterprises (SMEs) has been emphasized. Complimenting these efforts, this study proposes that building social networks capable of informing requisite financial behaviors would facilitate the financial inclusion of SMEs co-existing in business clusters. This study aimed to empirically test the moderating influence of collective action, bonding, trust, and bridging on the effect of financial behavior on financial inclusion. Using a sample of 311 owners/managers of small and medium scale businesses in sub-urban clusters in South-Eastern Nigeria, the hierarchical moderated regression analysis was used to test the hypotheses of the study. Results show a positive main effect of financial behavior on financial inclusion (βf = 0.162; t (304) = 1.503; p < 0.05). Also, collective action (βfca = 0.201; t (304) = 6.906; p < 0.05) and bridging (βfbr = 0.201; t (304) = 6.906; p < 0.05) had positive moderating effects, bonding (βfb = 0.032; t (304) = 1.423; p > 0.05) and trust (βft = 0.014; t (304) = 0.9609; p > 0.05) were statistically insignificant. For policy implications, social virtues such as bridging and collective action are more veritable tools for financial inclusion than the personal virtues of trust and bonding and should be factored into economic and social intervention being deployed by institutions interested in meeting the banking/financial needs of businesses.