Parental Financial Education During Childhood and Financial Behaviors of Emerging Adults
AffiliationUniv Arizona, Family Studies & Human Dev, Norton Sch Family & Consumer Sci
MetadataShow full item record
PublisherSPRINGER PUBLISHING CO
CitationLeBaron, A. B., Holmes, E. K., Jorgensen, B. L., & Bean, R. A. (2020). Parental Financial Education During Childhood and Financial Behaviors of Emerging Adults. Journal of Financial Counseling & Planning, 31(1), 42–54. https://doi.org/10.1891/JFCP-20-00021
Rights© 2020 Association for Financial Counseling and Planning Education®
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AbstractThe purpose of this article was to determine whether overt financial education from parents during childhood (retrospective measure collected in the same survey wave) is associated with a greater frequency of healthy financial management behaviors in emerging adulthood, and whether this relationship is dependent on gender Using a sample of emerging adults from the Flourishing Families dataset (N = 437), we ran two multivariate linear regressions one with and one without the interaction variable. Results suggest that financial education from parents during childhood is linked with a greater frequency of healthy financial behaviors in emerging adulthood but was not dependent on gender Financial educators should involve parents when teaching children about money, and they should educate parents on how to teach their children about money.
Note12 month embargo; published online: 16 March 2020
VersionFinal accepted manuscript
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Financial Identity Formation: The Role of Perceived Parental SES, Parental Financial Communication, Formal Education, Work Experience, Attitudes, Subjective Norms, and Perceived Behavioral ControlCard, Noel A.; Bosch, Leslie Ann; Russell, Stephen; Segrin, Chris; Serido, Joyce; Card, Noel A. (The University of Arizona., 2013)Young adulthood is a crucial period for identity development, and an unclear sense of identity has been associated with deleterious psychological and social outcomes (Kroger & Marcia, 2011). Young adults have also identified self-sufficiency, including financial independence, as an essential aspect associated with attaining adulthood (Arnett, 2000). However, current realities such as global economic uncertainty and a shift toward greater personal responsibility for financial security may threaten the successful attainment of these essential goals (Furstenberg, Rumbaut, & Settersten, 2005). Hence, I explored identity formation (Erikson, 1950, 1968) in the domain of finance. Four socialization factors (perceived parental SES, parental financial communication, formal financial education, and high school work experience) and three beliefs (attitudes, subjective norms, and perceived behavioral control) were used to predict financial identity (achievement, foreclosure, moratorium, and diffusion) in a sample of college students (N = 2,098) who were surveyed at two time points approximately 2.5 years apart. Four models were tested using structural equation modeling (SEM). First, using crossectional data, I tested the extent to which socialization factors and financial beliefs predicted financial identity. I found support for 79% of the hypothesized associations between the variables. Second, using crossectional data, I examined the degree to which financial beliefs mediated the association between socialization factors and financial identity. Findings indicated that financial beliefs partially mediated the association between parental financial communication and financial identity. Third, using longitudinal data, Time 1 (T1) socialization factors and T1 beliefs were used to predict Time 2 (T2) financial identity. As expected, T1 financial identity was the most robust predictor of T2 financial identity. After controlling for T1 financial identity, T1 variables were most predictive of changes in T2 foreclosure: Increases in foreclosure were predicted by perceived parental SES, parental communication, formal education, and subjective norms. Finally, T1 financial beliefs were allowed to mediate the association between T1 socialization factors and T2 financial identity. I found no evidence of mediation using longitudinal data. Findings from this study suggest that identity formation within the financial domain is consistent with identity formation in other recognized identity domains.
Can We Talk About Money? Financial Socialization Through Parent–Child Financial DiscussionLeBaron, Ashley B.; Marks, Loren D.; Rosa, Christina M.; Hill, E. Jeffrey; Univ Arizona, Family Studies & Human Dev (SAGE PUBLICATIONS INC, 2020-02-10)This multigenerational, qualitative research study explores family financial discussion processes that may lead to better financial preparation for emerging adults. Interviews were conducted with 90 emerging adults from three universities as well as 17 of their parents and 8 of their grandparents. Qualitative analyses revealed two major themes associated with family financial discussion processes. In parent-initiated discussions, principles were taught primarily through vertically structured (top-down) delivery. Three concepts reported across all three generations of respondents included (a) sharing financial experiences, (b) involving children in decisions, and (c) engaging in age-appropriate conversations. In child-initiated discussions, analyses revealed that financial principles were often taught in interactive, conversational, horizontal, and organic ways. Analyses identified two recurring concepts or contexts: (a) children asking financial questions and (b) child-initiated, age-appropriate conversations. These results highlight healthy processes for family financial discussion that may better prepare emerging adults for financial adulthood and reduce financial instability.