“…Research suggests that the impact of parents' example on their children's financial knowledge, attitudes, and behaviors in both childhood and adulthood is hard to overstate (Jorgensen, Rappleyea, Schweichler, Fang, & Moran, ; Shim et al, ; Webley & Nyhus, ). Hira () explained that it is in the family where people attain their values, attitudes, knowledge, experiences, and sense of financial responsibility.…”
Objective
To qualitatively explore the whats and hows of financial socialization in families, as reported by emerging adults and their parents and grandparents.
Background
Previous research has examined the positive impact of financial socialization in families as well as the negative consequences of a lack of sufficient financial education. However, there is a need to explore the breadth of parent–child financial socialization methods and topics.
Method
A convenience sample of 90 emerging adults (18–30 years of age), 17 of their parents, and eight of their grandparents (N = 115) were interviewed at three diverse universities regarding what and how their parents taught them about money. Parents and grandparents were also interviewed regarding what and how they taught their children about money.
Results
Thematic content coding revealed three core how themes (modeling, discussion, and experiential learning) and four core what themes (financial planning, work ethic, money management, and sharing). The themes coded most often were discussion and money management.
Conclusion
The findings provide a starting point for gaining insight about how and what parents teach children about money but leave many questions unanswered that future research will need to address to build efficient and effective evidence‐based approaches for parental financial socialization in future generations.
Implications
Family life educators and others can use our findings to better understand how financial socialization occurs in families as a necessary step in ultimately improving financial socialization and increasing the financial capability and independence of emerging adults.
“…Research suggests that the impact of parents' example on their children's financial knowledge, attitudes, and behaviors in both childhood and adulthood is hard to overstate (Jorgensen, Rappleyea, Schweichler, Fang, & Moran, ; Shim et al, ; Webley & Nyhus, ). Hira () explained that it is in the family where people attain their values, attitudes, knowledge, experiences, and sense of financial responsibility.…”
Objective
To qualitatively explore the whats and hows of financial socialization in families, as reported by emerging adults and their parents and grandparents.
Background
Previous research has examined the positive impact of financial socialization in families as well as the negative consequences of a lack of sufficient financial education. However, there is a need to explore the breadth of parent–child financial socialization methods and topics.
Method
A convenience sample of 90 emerging adults (18–30 years of age), 17 of their parents, and eight of their grandparents (N = 115) were interviewed at three diverse universities regarding what and how their parents taught them about money. Parents and grandparents were also interviewed regarding what and how they taught their children about money.
Results
Thematic content coding revealed three core how themes (modeling, discussion, and experiential learning) and four core what themes (financial planning, work ethic, money management, and sharing). The themes coded most often were discussion and money management.
Conclusion
The findings provide a starting point for gaining insight about how and what parents teach children about money but leave many questions unanswered that future research will need to address to build efficient and effective evidence‐based approaches for parental financial socialization in future generations.
Implications
Family life educators and others can use our findings to better understand how financial socialization occurs in families as a necessary step in ultimately improving financial socialization and increasing the financial capability and independence of emerging adults.
“…Financial management behaviours, such as balancing spending and savings, controlling spending, paying bills, budgeting, and planning and tracking finances, are conducive to good financial outcomes. Many studies, including Jorgensen et al (), Ryan () and Shim et al () examine these outcomes in young adults. Because of the limits on their responsibilities and autonomy, fewer financial management behaviours are examined among adolescents.…”
This article describes and catalogues person‐specific measures of financial outcomes that are available for adolescents and young adults in three large longitudinal Australian surveys: the Longitudinal Surveys of Australian Youth, the Longitudinal Study of Australian Children, and the Household, Income and Labour Dynamics in Australia Survey. It summarises international research that has been conducted on young people's financial outcomes, illustrating outcomes that have been investigated, research questions that have been asked, and distinctions that have been drawn between adolescents and young adults. It considers the strengths and weaknesses of the three surveys for extending this research into the Australian context.
“…A unique transitional stage in development between near total dependence on family adolescence and near total independence is represented by the emerging adult's population [1] with range of age 18 to 25 years old [2,3,4], which financial independence is one key indicator of a successful transition to adulthood [3]. Nevertheless, a significant source of stress for college students is deal in financial strain, that could raise the risks of depression and other mental health problems and lowers the probability of graduating from college if it not manage in proper [5, p. 453].…”
Section: Introductionmentioning
confidence: 99%
“…Furthermore, studies about emerging adults financial behavior found that lack adequate financial knowledge, poor financial decisions and engage in more risk-taking behaviors are related to most of emerging adults [2,6]. A study that has been done by B. L. Jorgensen, et al [1] in examine the emerging adults financial behavior base coureses from 1 August 2019 in 2019/2020 academic year at Management Department Program State University of Medan. Nonparamatric statistics were used and all data and hypotheses were analyzed through structural equation modeling partial least square with the help pf Smart PLS 3.0 application.…”
This study focuses on investigating the relation between parental financial communication and financial behavior in emerging adults, an issue which most studies have less intention in the current literature. Primary data were used with a cohort of university students that taken financial courses in 2019/2020 academics year in State University of Medan with total sample (n = 241) to develop a pathways model of parental financial communication towards emerging adults Financial Behavior. The sample participants ranged from 18 to 25 years old. The finding confirms the existence of parental financial communication relationship towards the development of emerging adults' financial behavior. More importantly, direct financial communication reveals significant in reflecting parental financial communication as latent variable rather than indirect financial communication. Moreover, direct parental financial communication trigger general management and capital accumulation management as a reflection of the development of emerging adults' financial behavior as latent variable.
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