The Unique Role of Parents and Romantic Partners on College Students' Financial Attitudes and Behaviors

Abstract

Extending a theoretical framework combining consumer socialization and planned behavior theories, the authors examined the influences that parents and romantic partners exert on college students' financial attitude and behavior using two waves of data collected from a sample of students in their first year (Wave 1) and fourth year (Wave 2) of college who were in a committed relationship at Wave 2 (N = 693 individuals). Using structural equation modeling, a positive relationship was found between the concurrent financial behavior of the parents and romantic partners and students' financial behavior (direct effects). After accounting for the parents' financial behavior at Wave 1, concurrent financial behavior of romantic partners (but not parents) positively predicted students' financial attitude, which in turn positively predicted students' financial behavior (indirect effects). These findings increase our understanding of the type and the timing of financial socialization factors that influence the financial behavior of college students.

Financial Influences Impacting Young Adults’ Relationship Satisfaction: Personal Management Quality, Perceived Partner Behavior, and Perceived Financial Mutuality

“…Perceived partner's financial behavior. This measure quantified participants assessment of the degree to which their partner engaged in six financial behaviors, using a five-point, Likert-type scale ranging from never (1) to always (5): (a) track monthly expenses, (b) spend within the budget, (c) pay credit balance in full each month, (d) save money each month for the future, (e) invest for long-term financial goals regularly, and (f) learn about money management regularly (Serido et al, 2015). The Cronbach's alpha coefficient for the scale was 0.83.…”

“…This measure assessed the extent to which participants felt that their partner shared similar cognitive and normative values regarding personal finances. The measure consisted of five items, each measured on a five-point, Likert-type scale ranging from strongly disagree (1) to strongly agree (5): (a) we have similar financial values and goals, (b) we share and manage our household finances jointly, (c) we often talk about the importance of financial security for later life, (d) we make financial decisions jointly, and (e) my partner has a positive influence on me when it comes to managing money (Serido et al 2015). The Cronbach's alpha coefficient for the scale was 0.82.…”

“…That lens no doubt shapes how an individual interprets a partner's behavior. Although the parental influences on young adults' financial management quality and behavior diminish as young adults form romantic relationships, it does not disappear entirely (Serido et al, 2015). Misunderstandings caused by the sort of miscommunication that may arise when addressing conflict, especially those concerning money, could, over time, erode relationship satisfaction if those misunderstandings are not discussed and reconciled to form a financial mutuality for the couple early in the relationship.…”

“…In this sense, young adults' relationship satisfaction likely reflects the assessment of their own contribution to the relationship and perception of their partner's contribution (Sabatelli & Shehan, 2004). Although there is some evidence that romantic partners gain influence with respect to financial matters during the period in which the relationship is being established (Serido, Curran, Wilmarth, Ahn, & Shim, 2015), research examining the association between finances and relationship satisfaction among young adults is an understudied topic. We argue that examining this association in the early stages of a relationship (e.g., cohabiting or recently married) may be particularly helpful in identifying strategies that promote positive financial communication and problem-solving skills.…”

Emerging adults' financial capability: A financial socialization perspective

“…Research to date refers to "young adults" (Kim & Chatterjee, 2013;Serido et al, 2015), "youth" (Drever et al, 2015;Lusardi, Mitchell, & Curto, 2010;Van Campenhout, 2015), "adolescence" (Kim, LaTaillade, & Kim, 2011), "young people" (Marron, 2014;Sherraden & Grinstein-Weiss, 2015) and "the young" (Lusardi et al, 2010) to denote a generation somewhere between 16 and 29 years old. We embrace the term "emerging adulthood" as it focuses more on the transitions and development of young people during this life stage rather than viewing young people merely as a static demographic segment (Arnett, 2000(Arnett, , 2015.…”