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1 – 10 of over 11000
Article
Publication date: 8 September 2023

Mousumi Singha Mahapatra, Jing Jian Xiao, Ram Kumar Mishra and Kexin Meng

This study aims to examine the association between parental financial socialization and life satisfaction and the mediating roles of desirable financial behavior in the…

Abstract

Purpose

This study aims to examine the association between parental financial socialization and life satisfaction and the mediating roles of desirable financial behavior in the association between parental financial socialization and life satisfaction of college students in India. Furthermore, this research also explores the moderating effects of parents’ socioeconomic characteristics (education, income and professions) in the association between parental financial socialization and desirable financial behavior.

Design/methodology/approach

A sample of 1,161 college students was collected in India. Parental financial socialization is measured by direct parental teaching in this study. The first stage moderated mediation model is performed to examine the direct and indirect effects through financial behavior of parental financial on life satisfaction as well as the moderating role of parents’ socioeconomic characteristics.

Findings

The mediation analysis shows that parental direct teaching is positively associated with young adults’ financial behavior, which in turn contributes to their life satisfaction. Furthermore, this study also finds negative moderation effects of parental education on the association between parental direct teaching and children's financial behavior.

Originality/value

This study extends the knowledge of family financial socialization in the context of India. Moreover, it examines the mediation roles of desirable financial behavior in the association between parental direct teaching and children’s life satisfaction. Furthermore, this paper explores the potential influence of parents’ education, income and professions on children’s financial behavior and life satisfaction.

Details

Young Consumers, vol. 25 no. 1
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 15 October 2020

Haidong Zhao and Lini Zhang

The objective of this study was to empirically examine how family financial socialization affects individuals' financial outcomes, including financial literacy, financial behavior…

2038

Abstract

Purpose

The objective of this study was to empirically examine how family financial socialization affects individuals' financial outcomes, including financial literacy, financial behavior and financial well-being, based on the family financial socialization theory (FFST).

Design/methodology/approach

Using a national representative sample of 6,311 US respondents from the 2016 National Financial Well-Being Survey, structural equation modeling (SEM) was conducted to test the hypotheses in this study. Sampling weights were incorporated into the structural model using the maximum likelihood estimation with robust standard errors and a Satorra-Bentler scaled test statistic (MLM estimation).

Findings

This study concludes the effectiveness of family financial socialization by showing that parental financial socialization has significant positive impacts on financial literacy, financial behavior and financial well-being. In addition, parents' education can significantly influence the quality of parental financial socialization.

Practical implications

The result underscores the importance of financial socialization in the family context and encourages parents to discuss financial matters with their children at home. Detailed implications have been provided to financial educators, practitioners and policymakers to incorporate parental involvement in the design of financial education programs, as well as financial services providers to improve marketing strategies for their banking services.

Originality/value

This research is amongst the first to empirically explore the relationships among parental financial socialization, financial literacy, financial behavior and financial well-being based on the FFST. The study also contributes to the literature by confirming the effects of parental socialization received in childhood on adults' later financial outcomes.

Article
Publication date: 19 June 2023

Kirti Goyal, Satish Kumar and Arvid Hoffmann

Prior work expresses concern about young people's rising debt and lack of financial preparedness. This study focuses on how financial socialization and psychological…

Abstract

Purpose

Prior work expresses concern about young people's rising debt and lack of financial preparedness. This study focuses on how financial socialization and psychological characteristics affect the personal financial management behavior (PFMB) of young professionals in India. The authors examine both the direct effect of these factors and the indirect effects through financial literacy and aforementioned psychological characteristics as mediators.

Design/methodology/approach

The authors develop a conceptual framework based on the extant literature and empirically test its hypotheses employing partial least squares structural equation modelling (PLS-SEM).

Findings

Attitude towards money, financial self-efficacy, financial risk tolerance, financial socialization through parental direct teaching and peers, and media are all positively associated with young professionals' PFMB, whereas external locus of control and procrastination are negatively associated with their PFMB. Almost all psychological characteristics partially mediate the association between financial socialization and PFMB. Finally, financial literacy plays a partially mediating role in the association between procrastination and PFMB as well as between financial socialization and PFMB.

Practical implications

This study helps regulators and policymakers understand PFMB among young professionals. Interventions should build on the positive role of financial socialization, cultivating a good attitude towards money and financial self-efficacy, and reducing reliance on an external locus of control and procrastination. This study also helps policymakers and financial educators develop societally beneficial personal finance programs.

Originality/value

This research investigates social, psychological and cognitive characteristics in a comprehensive framework to further the authors’ understanding of the topic of PFMB.

Details

International Journal of Bank Marketing, vol. 41 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 19 April 2022

Lynn Ling Min Wee and Siew Ching Goy

The purpose of this paper is to examine the relationship between financial socialisation experiences, socio-economic factors, demographic characteristics and the financial

1208

Abstract

Purpose

The purpose of this paper is to examine the relationship between financial socialisation experiences, socio-economic factors, demographic characteristics and the financial knowledge of first year undergraduate students.

Design/methodology/approach

Using a questionnaire, data were collected from a sample of 450 first year university students from both private and public universities. A multivariate regression method was adopted to examine the influence of financial socialisation among respondents of different ethnic groups and their social backgrounds on the individual's financial knowledge.

Findings

The findings indicate that: firstly, financial knowledge is low among first-year university students in Sarawak. Secondly, male respondents outperform female counterparts in terms of financial knowledge. Thirdly, parental financial socialisation remains the main source of financial knowledge among the students. Fourthly, there are significant differences in financial knowledge across ethnic groups.

Research limitations/implications

It is paramount to implement financial education programmes to elevate the financial literacy for both youth and parents since parents remain the primary source of financial socialisation for young adults.

Practical implications

The study suggests that financial knowledge varies according to gender and ethnicity. Hence, financial education programmes should be designed to accommodate the differences between groups based on ethnicity and gender to achieve the best outcome.

Originality/value

This is the first study that draws a representative sample of university students in Sarawak that examines the effects of ethnicity, gender and parental financial socialisation on financial knowledge among first year university students.

Details

International Journal of Social Economics, vol. 49 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 13 July 2012

Leila Falahati and Laily Hj. Paim

The purpose of this paper is to examine the moderating effect of gender on the relationship between financial attitude, financial socialization, and secondary socialization agents…

9493

Abstract

Purpose

The purpose of this paper is to examine the moderating effect of gender on the relationship between financial attitude, financial socialization, and secondary socialization agents on experiencing financial problems among university students.

Design/methodology/approach

The sample for the present paper comprises data collected from 11 universities across Malaysia using the stratified sampling method. A multi‐group analysis approach using Amos was applied to assess the moderating effect of gender.

Findings

The findings indicated that gender significantly moderates the effect of financial attitude, financial socialization and secondary socialization agents on financial problems among students.

Research limitations/implications

There are few empirical studies on the moderating effect of gender on financial matters, and this research is one of the first that contribute to a better understanding of the gender influence on financial matters, particularly for family economics and gender educators.

Originality/value

The paper contributes to the scarce knowledge about gender and financial matters, by introducing readers to the importance of gender issues in financial practices. It represents a starting point to an important area of research.

Article
Publication date: 3 February 2023

Asheesh Pandey and Utkarsh

Drawing from socialization theory this study investigates the effect of financial socialization and mediating role of “attitude toward money” (ATM) and financial literacy on the…

Abstract

Purpose

Drawing from socialization theory this study investigates the effect of financial socialization and mediating role of “attitude toward money” (ATM) and financial literacy on the financial behavior of young adults in an emerging economy.

Design/methodology/approach

A cross-sectional survey of 302 young adults was conducted and responses were analyzed to determine the key antecedents of financial behavior. The model was tested using OLS regression. Parallel mediation was tested using Process Macro in SPSS.

Findings

ATM, subjective financial literacy, objective financial literacy are positively associated with financial behavior. Furthermore, parallel mediation analysis establishes the role of ATM and subjective financial literacy as a mediator between financial socialization and financial behavior.

Research limitations/implications

These findings have implications for both financial and academic institutions and policymakers. Academic institutions should introduce personal wealth management courses at early stages in their courses to help young adults make appropriate financial decisions. Policymakers should emphasize creating a habit of budgeting and managing expenses among young adults in addition to promoting financial literacy.

Originality/value

This study focuses on determinants of financial behavior in young adults and specifically, argues that involving parents to financially socialize their children have a crucial impact on subjective financial literacy and ATM which has not been explored in previous literature.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 28 June 2018

Kumar Saurabh and Tanuj Nandan

The purpose of this paper is to examine the relationships between financial knowledge, socialization and financial satisfaction with financial risk attitude and financial behavior…

2137

Abstract

Purpose

The purpose of this paper is to examine the relationships between financial knowledge, socialization and financial satisfaction with financial risk attitude and financial behavior as a mediator after demonetization and introduction of GST.

Design/methodology/approach

The sample consisted responses of 286 individuals from the city of Allahabad, Uttar Pradesh, India and making financial decisions for the household for at least last two years. The data were analyzed using exploratory factor analysis and mediation regression analysis.

Findings

All sub-scales used to measure constructs had satisfactory reliabilities and internal consistencies. It was found that financial risk attitude and financial behavior both mediate the relationship between financial socialization and financial satisfaction as well as between financial knowledge and financial satisfaction.

Research limitations/implications

This research is based upon survey method and voluntary participation. Hence one can question generalization of findings to larger samples. Moreover, the study is limited to a restricted geographical region which could affect the generalization of findings.

Practical implications

Results provide insights into the antecedents of financial satisfaction of individuals from tier II city of India. Financial planners may utilize this study for enhancement of financial satisfaction of their clients and hence retention of the same.

Originality/value

A majority of researchers use survey without evaluation validity of instruments in the selected context and sample. This research contributed to the literature and practice by testing validation of constructs of financial satisfaction in India.

Details

South Asian Journal of Business Studies, vol. 7 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 24 September 2018

Stephen Agnew

This paper aims to use the age of a child when pocket money is first received, a savings account is first opened and financial discussions between parent and child commence as…

1230

Abstract

Purpose

This paper aims to use the age of a child when pocket money is first received, a savings account is first opened and financial discussions between parent and child commence as factors to assess financial socialisation of children by parents in the home. The impacts on financial knowledge, attitudes and behaviour of young teenagers of each of the three age-related variables mentioned above were then examined.

Design/methodology/approach

Using a questionnaire, data were collected from a sample of 1,247 14 and 15 year olds. Regressions were run to calculate how the ages children first received pocket money, had a savings account and started having financial discussions with parents correlated with impulsive spending behaviour, financial quiz scores, saving intentions and whether parents were seen as role models.

Findings

Financial discussions between parent and child were found to be an important influence on future financial knowledge, attitudes and behaviour. In addition, savings accounts can provide young teenagers with access to funds, which could be spent unwisely without associated financial awareness. Financial discussion in the home between parent and child was the most influential of the three factors examined. Putting money into a savings account and the giving of pocket money can provide further opportunities to engage in financial socialisation.

Research limitations/implications

Limitations of this study include the self-reported nature of the age variables. Future projects could use social research techniques, such as personal interviews of family members or keeping financial diaries. Rich qualitative data could further inform the findings of the current study.

Practical implications

Educational finance courses should include an objective of incorporating and stimulating financial discussions in the home, as talking about finances appears to be one of the most effective financial socialisation factors for children.

Originality/value

While previous research has identified the process of financial socialisation, the originality of this paper is its examination of the influence of individual financial socialisation factors in the home on financial attitudes, knowledge and behaviour.

Details

Young Consumers, vol. 19 no. 4
Type: Research Article
ISSN: 1747-3616

Keywords

Article
Publication date: 25 May 2012

Mohamad Fazli Sabri, Christine C. Cook and Clinton G. Gudmunson

The purpose of this paper is to examine the relationships between personal and family backgrounds, academic ability, childhood consumer experience, financial socialization

5806

Abstract

Purpose

The purpose of this paper is to examine the relationships between personal and family backgrounds, academic ability, childhood consumer experience, financial socialization, financial literacy, and perceived financial well‐being of college students.

Design/methodology/approach

Data were collected using a multi‐stage sampling technique from 11 public and private universities across Malaysia and the sample consists of 2,219 college students. Structural equation modelling was utilized to test the hypotheses.

Findings

Childhood consumer experiences such as savings habits contribute to students’ financial well‐being (money saved, current financial situation, and financial management skills). Financial socialization agents, for example, through parents and religion sources could increase college students’ financial well‐being. Financial literacy was related to financial well‐being. There were important differences between the Malay and Chinese ethnic groups in Malaysia.

Research limitations/implications

Overall, implications and recommendations for future research, teaching, and public policy are also provided for parents, college administrators, counselors and educators.

Originality/value

This research provides meaningful information about how various factors (childhood experience, financial socialization, and financial literacy) predict students’ financial well‐being.

Details

Asian Education and Development Studies, vol. 1 no. 2
Type: Research Article
ISSN: 2046-3162

Keywords

Article
Publication date: 21 March 2023

Jitender Kumar, Vinki Rani, Garima Rani and Tapan Sarker

The current study aims to identify the impact of financial literacy, financial risk-tolerance, financial socialization, financial stress, socio-demographic factors and financial

1197

Abstract

Purpose

The current study aims to identify the impact of financial literacy, financial risk-tolerance, financial socialization, financial stress, socio-demographic factors and financial behavior on the individual financial wellbeing residing in India's National Capital Region (NCR) region. Understanding financial wellbeing is crucial as it helps individuals understand personal finance better and develop a more favorable financial attitude. The information can depict individuals' financial skills, knowledge and attitudes toward achieving financial wellbeing in emerging economies.

Design/methodology/approach

Through self-administered survey questionnaires, data are obtained using convenience sampling from 420 (394) respondents regarding individual financial wellbeing levels in India. The survey responses were collected between May 2022 and July 2022. The authors use the “partial least squares structural equation modeling” (PLS-SEM) technique to test the research hypotheses.

Findings

The present study's outcome confirms that five determinants, such as financial literacy, financial risk-tolerance, financial socialization, financial stress and socio-demographic factors, significantly influence the financial behavior of individuals. Further, financial behavior, financial literacy, financial risk-tolerance and financial socialization significantly influence financial wellbeing. However, financial stress and socio-demographic factors have statistically insignificant impacts on financial wellbeing.

Originality/value

The present study is exclusive in which an effort is being made to acquire relative importance on financial behavior and an individual's financial wellbeing. The present paper will help the government, financial services providers, and policymakers in offering innovative economic schemes and designing policies that may enhance the financial wellbeing of individuals. Finally, this article provides the road map for future research in this field.

Details

International Journal of Bank Marketing, vol. 41 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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