Boomerang bias: Examining the effect of parental coresidence on Millennial financial behavior

Bentley, Michael L.; Bogan, Vicki L.

doi:10.1002/cfp2.1034

Cited by 4 publications

(4 citation statements)

References 46 publications

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“…Poor financial knowledge has a positive relationship with the level of indebtedness and difficulty repaying loans [45][46][47][48][49]. Individuals with a good level of indebtedness knowledge can avoid the imposition of delay charges on credit cards, have a high net worth, access to planned savings for emergencies and retirement, and a lower debt-to-overall income ratio [50,51].…”

Section: Indebtedness Knowledgementioning

confidence: 99%

“…Saving behaviors differ according to each individual and motive [43,[65][66][67]. Parental influence is the most significant factor for youth saving [41,49,68]. Saving behavior only persists in early youth and it will gradually change according to the living environment [66], and only a small number of millennial generations are able to save [69][70][71].…”

Section: Saving Behaviormentioning

confidence: 99%

“…Meeting lifestyle needs beyond means also causes individuals to become indebted [60]. Education level [49,68,[74][75][76][77][78] and income level are also determinants of youths 'propensity to go into debt [76][77][78]. High debt-to-income ratios leave individuals vulnerable to financial shock and financial fragility [30,79].…”

Section: Indebtedness Behaviormentioning

confidence: 99%

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The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

et al. 2022

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Financial fragility is an important issue in the well-being of individuals. Previous studies have shown that many young people are vulnerable to financial fragility. To add value to previous findings, the issue of financial fragility was focused on single youths in the middle-income group (M40) in urban areas. The objective of the study was to determine the factors influencing the financial fragility of single youth (M40) in urban areas. A quantitative approach using a survey method was applied. The study’s sample consisted of 25–34-year-old single urban youths. Questionnaires were used as research instruments and were distributed online. A total of 374 samples were analyzed using multilevel regression. The results of the analysis show that spending knowledge, financial behavior, saving behavior, and financial shock are the determining factors of financial fragility among M40 single youth in urban areas.

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Section: Indebtedness Knowledgementioning

confidence: 99%

Section: Saving Behaviormentioning

confidence: 99%

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The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

et al. 2022

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“…Sebuah riset di Amerika Serikat menemukan bahwa dengan meningkatnya biaya hidup, banyak kaum milenial yang tinggal bersama dengan orang tua mereka sebagai mekanisme untuk mengurangi beban keuangan (Bentley & Bogan, 2019). Hasil penelitian menunjukkan bahwa mereka yang tinggal bersama orang tua memiliki hutang yang lebih rendah daripada yang hidup sendiri, dan bahwa kaum wanita memiliki hutang yang lebih besar daripada pria.…”

Section: Studi Literaturunclassified

Faktor yang Mempengaruhi Keputusan Keuangan Masa Depan

Holik¹,

Mahmud²

2023

Owner

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This research tries to find factors influencing financial decision in the future. There are three variables we use here: financial decision in the future, saving decisions and trust in banking institutions. The research was conducted by involving as many 200 respondents—teachers in High School—in the Makassar City. The method to analyze is Multivariate Regression that can find impact of independent variables on dependent variable. The results of study prove that the variable of current saving decision has a significant positive impact on the variable of future financial decisions. Likewise, the variable of trust in banking institution also proves a significant positive result. From these findings, it is understood that when people have better and stronger desire to save, they tend to allocate money for the future. Also when people have trust in banking institutions, they will manage money wisely for the future. We conclude that people who like to save and believe in banking institutions will easily make financial planning due to uncertainties that they must face in the future.

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Boomerang children and parental retirement outcomes

Seiter,

Lopez,

Slavov

2024

Rev Econ Household

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As the share of U.S. adult children living with their parents increases, it is important to understand how children who “boomerang” back home impact their parents in their pre-retirement and post-retirement years. We use data from the Health and Retirement Study (HRS) to examine the effects of boomerang children on their parents’ labor market expectations and choices, as well as on their wealth, health, and life satisfaction. Event study analysis suggests that boomerang children return home due to short-term instabilities, such as negative shocks to marriage, income, and employment. We find that boomerang children are associated with a small increase in their parents’ subjective probability of working after age 65, and with a temporary increase in their parents’ non-housing debt. However, in the aggregate, we find no clear evidence that boomerang children impact parents’ current or future labor market choices, overall wealth, health, or life satisfaction. (We do find some evidence of an increase in hours worked among parents in the bottom wealth decile). One possible explanation for the lack of aggregate impact is that boomerang children contribute to household expenses. We find that boomerang events are associated with an increase in financial transfers from children to parents, particularly among parents in the bottom half of the wealth distribution.

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Boomerang bias: Examining the effect of parental coresidence on Millennial financial behavior

Cited by 4 publications

References 46 publications

The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

The Impact of Financial Shock, Behavior, and Knowledge on the Financial Fragility of Single Youth

Faktor yang Mempengaruhi Keputusan Keuangan Masa Depan

Boomerang children and parental retirement outcomes

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