Implicit Family Financial Socialization and Emerging Adults’ Financial Well-Being: A Multi-Informant Approach

Abstract

This study’s purpose is to investigate how implicit family financial socialization (family communication quality and family economic enmeshment) influences emerging adults’ objective and subjective financial well-being mediated by the degree to which the emerging adult child adopts their parents as financial role model. Using a multi-informant approach, structural equation model family-level analyses were conducted based on responses from mothers, fathers, and emerging adults in 160 Italian families. Results indicate that family communication quality has an indirect, positive effect on subjective financial well-being through adoption of parents as a financial role model. Family economic enmeshment has a direct, negative effect on the emerging adult’s personal income not received from their parents. A direct, positive relationship was found between adoption of parents as financial role models and economic dependence on parents.

The multidimensional subjective financial well-being scale for emerging adults: Development and validation studies

“…Consequently, we suggest that the General Subjective Financial Well-being factor can also be used alone as a measure of subjective financial well-being (when the research is just focused on the core of the construct). For example, we used only this factor as the outcome of the family financial socialization process (Lanz, Sorgente, & Danes, accepted).…”

Catch them young: Impact of financial socialization, financial literacy and attitude towards money on financial well‐being of young adults

“…Moreover, research has shown that parental financial socialization affects their financial behaviour (Jorgensen & Savla, 2010; Kim & Chatterjee, 2013; Otto, 2013; Shim et al, 2009; Sohn, Joo, Grable, Lee, & andMinjeung Kim., 2012). The effect of financial socialization in influencing well‐being has received more attention recently (Sorgente & Lanz, 2017; Lanz et al, 2019; for review see Gudmunson & Danes, 2011). Sansone et al (2018) evaluated the relationship between receiving an allowance (pocket money) in childhood and financial confidence in adulthood.…”

“…In this study, the focus was on parental socialization because parents are a key socialization agent (Drever et al, 2015; Lanz et al, 2019). Financial socialization was considered to include discussion with parents during childhood on savings, investing, financial products, budgeting and spending behaviour.…”

“…Therefore, studying the financial well‐being of young adults, understanding the causes that hinder their well‐being and proposing possible solutions is crucial (Sorgente & Lanz, 2017). The literature focusing on the financial well‐being of university and college students is gaining research attention (Lanz, Sorgente, & Danes, 2019; Marchant & Harrison, 2019; Vosylis & Erentaitė, 2019; Watson, Barber, & Dziurawiec, 2015).…”

“…Research indicates that parents can play a vital role in developing positive financial behaviour in their children's later life by discussing financial issues at home (Lanz et al, 2019). In particular, few studies explain how financial socialization by parents influences the financial well‐being of young adults (Lanz et al, 2019). Furthermore, financial literacy is expected to influence financial well‐being and financial behaviour positively.…”