FAMILY FINANCIAL SOCIALIZATION AND GEN Z'S FINANCIAL BEHAVIOR: MEDIATING ROLE OF FINANCIAL SELF-EFFICACY

Purpose: The objectives of the study include examining the role of family financial socialization (FFS) in shaping young adults’ financial self-efficacy (FSE), understanding how FSE contributes to financial behavior (FB), and exploring the mediating role of FSE in the relationship between FFS and FB of young adults. Design/Methodology: Using a quantitative technique, data were collected from 395 university students in Punjab, India. The study utilized partial least squares structural equation modeling (PLS-SEM) to scrutinize and decipher the intricate interconnections among the variables. Findings: The results support the hypotheses, demonstrating the significant influence of FFS on FSE and FB, as well as the mediating role of FSE. Practical/Social Implications: Educational institutions and policymakers can integrate these findings into financial education programs to boost financial literacy and self-efficacy among young adults. Additionally, policymakers can encourage parents to actively engage in open financial discussions with their children. Originality/Value: This study broadens the scope of existing research by investigating FFS through multiple dimensions and focusing on university students in Punjab, a previously underexplored demographic. It also uniquely examines the mediating role of FSE in the relationship between FFS and FB.

PurposeThe 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/approachUsing 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).FindingsThis 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 implicationsThe 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/valueThis 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.

PurposeThis study, grounded in the theory of family financial socialization, aims to empirically investigate the influence of financial socialization within the family on the financial well-being of undergraduate students.Design/methodology/approachThe data was collected using a purposive sampling method from undergraduate students of Punjab state. The research involved 242 university students in the state of Punjab. AMOS 20.0.0 was employed to assess the hypothesized relationships.FindingsThe results indicate a significant positive influence of family financial socialization on financial attitudes, financial self-efficacy and financial well-being among undergraduate students. Subsequent mediation analysis, utilizing bootstrapping in AMOS, revealed that both financial attitude and financial self-efficacy partially mediate the association between family financial socialization and financial well-being.Originality/valueThis study uniquely explores the direct and indirect effects of family financial socialization on undergraduate students’ financial well-being, highlighting the mediating roles of financial self-efficacy and financial attitude. It addresses a significant research gap in the Indian context, providing valuable insights for financial institutions and policymakers, suggesting strategies to enhance students’ financial well-being through targeted interventions based on family financial socialization.

ObjectiveThis study investigated the association between family financial socialization during adolescence and seeking financial advice in early adulthood. Personality, financial risk tolerance, and financial knowledge were examined as mediators. Gender differences throughout the parental financial socialization process and outcome were also explored.BackgroundYoung adults are transitioning into adulthood. It has been found they lack fundamental financial knowledge and are more vulnerable to financial stress and financial shocks. Understanding young adults' financial advice‐seeking behavior is important because it is linked to positive financial outcomes. Parents serve as significant financial socialization agents for their children and can influence their financial knowledge, attitude, behavior, and long‐term well‐being. However, little attention has been paid to the role of parents in the financial socialization process on children's financial advice seeking in early adulthood.MethodUsing the 1997 National Longitudinal Survey of Youth and the family financial socialization model, we constructed a structural framework in which we could examine whether two aspects of family financial socialization, parenting style and receiving allowance, influenced young adults' propensity to seek financial advice. Also, the mediating roles of personality traits, financial risk tolerance, and financial knowledge were examined.ResultsPersonality traits, financial risk tolerance, and financial knowledge were directly associated with financial advice‐seeking behavior. Parenting style and receiving allowance during adolescence were indirectly associated with young adults' financial advice‐seeking behavior. Additional analyses by gender showed significant differences in the direct and indirect associations among financial socialization factors, personality traits, and financial advice‐seeking behavior between men and women.ConclusionThis study illustrates the association between early financial socialization and financial advice‐seeking behavior through psychological and knowledge factors focusing on the importance of family influence. Using a national dataset and the structural equation modeling method, we found insightful direct, indirect, and total effects of parental financial socialization on young adults' financial advice‐seeking behavior and significant gender differences in these effects.ImplicationsThe findings provide implications for policymakers and financial educators and practitioners. This study underscores the significant role of parents as financial socialization agents and their long‐term influence on adult children's financial advice‐seeking decisions. Current financial literacy programs not only should focus on educator–student relationships but also need to pay attention to parental involvement in children's financial socialization process. Adult financial education would help parents play a role in providing financial advice to their children as more capable socialization agents. Accessible financial counseling services at the community level can potentially meet the needs of young adults who have a lower financial knowledge to benefit from professional advice.

The Covid-19 pandemic has had a very high impact on students’ monthly expenses. This is indicated by a decrease in pocket money, changes in the source of pocket money income, and a significant change in student spending. This study investigates the effect of family financial socialization on financial behavior mediated by self-efficacy. The survey was conducted online to 157 private and public undergraduate and postgraduate students in Indonesia, including questions about demographics, family financial socialization, financial behavior, and self-efficacy. The research model consists of three hypotheses tested using structural equation modeling. The results show that family financial socialization has a positive effect on financial behavior directly. Family financial socialization has a positive effect on financial behavior indirectly through self-efficacy.

Purpose Previous research has demonstrated that financial self-efficacy (FSE) plays a significant role in shaping desirable financial behaviors. However, this relationship might be strengthened or weakened in the presence of financial stress and financial advice seeking during pandemics or similar unexpected events. This research aims to examine the relationship between FSE and financial behaviors under economic uncertainties. Design/methodology/approach The data used in the study was collected between November 17, 2021 and December 15, 2021, and related to economic, demographic, health and psychological attributes before and during the COVID-19 pandemic. The research employs a theoretical framework integrating the financial help-seeking theory with the stress and coping theory to explore these relationships. A moderated mediation model was used to analyze the relationship between financial behavior and FSE. The technique of structural equation modeling (SEM) using the R-Lavaan package was applied to analyze the moderated mediation framework and hypotheses of this study. Findings Financial advice seeking plays different roles in the relationship between FSE and financial behaviors in the presence or absence of financial stress. Consumers are more likely to seek external financial advice to engage in positive financial behaviors when experiencing financial stress. Consumers with higher levels of FSE engaged in more positive financial behaviors. Consumers who have sought financial advice in the past or are actively seeking financial advice are more likely to engage in positive financial behaviors. Originality/value This study introduces and justifies a moderated mediation framework to investigate the relationship between FSE and financial behaviors during financial crises. This study has confirmed the relationship between FSE and financial behaviors while considering the roles of financial advice seeking and financial stress during a pandemic. The findings have practical implications for consumers, financial service providers and policymakers in preparing for unexpected financial shocks and enhancing financial resilience.

This study aims to explore and provide empirical evidence on how financial socialization directly affects financial knowledge, financial skills, and financial self-efficacy. Additionally, it investigates the relationships between financial knowledge, financial skills, and financial self-efficacy, while also examining the indirect influence of financial socialization on financial self-efficacy through the mediation of financial knowledge and skills. The research focused on a sample of 208 millennials from West Sumatra, selected through non-probability accidental random sampling. The data analysis utilized the partial least square structural equation modeling technique (SEM PLS) with SmartPLS 3.0. The findings revealed that the direct impact of financial socialization on financial knowledge and skills was statistically significant. However, the direct effect of financial socialization on financial self-efficacy was not deemed significant. The study also established the statistically significant impacts of financial knowledge and financial skills on financial self-efficacy, along with confirming the indirect influence of financial socialization on financial self-efficacy through the mediation of financial knowledge and skills.

PurposeThe main purpose of this study was to find out the relationship between financial literacy and financial behavior and to discover the mediating influence of family financial socialization on this relationship. The study also particularizes that how personal knowledge of finance of an employee and whatever they have learned through family socialization will help them to make sound decisions having a financial impact on them and their family.Design/methodology/approachEmployees of financial institutions employed and residing in Lahore, Pakistan, were the target population of this report. It was a cross-sectional quantitative research study. By using a detailed questionnaire, primary data were obtained. The sample size was 330; through convenience sampling, employees employed in banks were chosen. Descriptive analysis, parametric test, reliability test, and correlational examination with the aid of SPSS 23 and the use of SmartPLS 3.0. are knowledge investigation techniques used in this examination study to infer outcomes.Results/findingsThe outcomes which are created from this exploration include: (1) there was no distinction in the financial conduct of representatives from various socioeconomics gatherings. Financial education has a critical positive relationship with financial behavior. (2) Family financial socialization additionally shows a huge positive relationship with financial education and financial behavior. (3) Financial education demonstrated a remarkable abnormal impact on financial behavior through family financial socialization. (4) Family financial socialization shows partial mediation between financial literacy and financial behavior. We can accomplish that formal, as well as informal, training of finance decides the financial behavior of people.Originality/valueThis study is the first of this kind to examine the association between financial literacy, and financial behavior using family financial socialization as a mediator and employees of financial institutions as the target population.

Financial behavior is a reality that must be faced by every individual in everyday life. Where every individual must behave financially well in order to balance between income and expenses so that they can meet the needs of life and not get caught in financial difficulties. Students are individuals who behave poorly with their finances. Students still have a soul that is still unstable and easily influenced by the surrounding environment. Students often have complex financial problems, because most students do not have limited income and reserves to use every month. Especially for students who have not worked and only get some money from their parents. The purpose of this study was to analyze the effect of financial attitude and financial socialization agents on the financial behavior of students who are boarding and studying in Medan with financial self-efficacy as a moderating variable. The type of research used is quantitative research with a descriptive approach. The population in this study were students who were boarding and studying in Medan. The determination of the sample size follows the rules in the PLS with a total of 100 respondents. The sampling technique used is non-probability sampling with method incidental sampling. The questionnaire that has been filled in by the respondent will then be processed using PLS (Partial Least Square). The results show that financial attitude has a positive and significant effect on financial behavior, financial self-efficacy has a positive and significant effect on financial behavior, and financial socialization agents have no significant effect on financial behavior. The results of the moderation test state that financial self-efficacy is a moderating variable for the relationship between financial attitude and financial behavior. Still, the results of the moderation test state that financial self-efficacy is not a moderating variable for the relationship between financial socialization agents and financial behavior. All independent variables are able to influence Y by 81.8% while the remaining 18.2% is explained by other variables not examined in this study. Keywords: Financial Behavior, Financial Attitude, Financial Self Efficacy, Financial Socialization Agents.

ObjectiveThis study explores the relationship between financial socialization agents and financial well‐being in early adulthood and the mediating role of financial capability.BackgroundThe family financial socialization theory provides a foundation for delineating the financial socialization process and outcomes in a family context. However, few studies have examined financial socialization experiences within a social context and their differential impacts on financial well‐being mediated by young adults' financial capability.MethodThis study used a sample of Koreans aged 25–39 years gathered from an online survey conducted in 2021 (N = 1,599). Linear regressions were used to estimate the associations between financial socialization agents and financial well‐being, and the mediating roles of financial capability factors.ResultsThe findings indicate that financial socialization from observing parental financial behavior was positively related to young adults' financial well‐being. Other socialization agents—including peers, media, and school—were generally uncorrelated with financial well‐being. Further analyses showed that financial capability was a mediator between observing parental financial behavior and financial well‐being.ConclusionYoung Korean adults who learned personal finance by observing their parents had higher financial well‐being. Part of this effect was due to the improved financial behavior learned through the socialization process.ImplicationsThe path to financial well‐being begins with experiential learning within a family context in early adulthood through improved financial behavior. Our findings call for greater attention to children who might be excluded from the benefits of family‐oriented financial socialization through observing parents' financial behaviors.

The current study examined the role of attachment insecurity, locus of control, and parental financial communication on the financial behavior of emerging adults from a family financial socialization theory perspective. Data were used from the Emerging Adult Financial Capability Study, the sample consisted of emerging adult college students (N = 321) from a large southeastern university in the United States. Structural equation modeling was used to examine the direct and indirect effects as well as the overall fit of the model that was constructed according to family financial socialization theory. Results suggested that increased attachment insecurity predicted decreased financial communication from parents and a decreased perception of an internal locus of control. Emerging adults who received greater financial instruction (both direct and indirect) and who felt they had a greater ability to influence outcomes in their life engaged in more sound financial behavior. Results also suggested that financial communication and locus of control mediated the relationship between attachment insecurity and financial behavior. The findings supported the inclusion of attachment as an important family relationship variable in the financial socialization process, as well as the structure of a conceptual model of family financial socialization theory.

The high cost of living and prolonged lockdowns due to the COVID-19 pandemic made the financial well-being of individuals vulnerable, especially young adults. This paper examines the impact of financial behaviour on financial well-being (FWB) among young Malaysians during the COVID-19 pandemic. The study collected variable data on financial literacy, financial behaviour, financial socialisation, self-control, financial technology and FWB. To collect a representative sample of Malaysian young adults, a multi-stage random sampling method was used, and 360 young adults aged 18–29 years old completed the questionnaires. Structural equation modelling was adopted to investigate the factors influencing young adults' FWB. The empirical findings revealed a significant mediating effect of financial behaviour in the relationships between financial literacy, financial socialisation, self-control, financial technology, and FWB. The research concluded that the mediation analysis yields a clear and firm conclusion that financial behaviour is important in empowering young adults’ FWB. Thus, the present study adds value to the existing literature on the relationship between financial behaviour and FWB. Furthermore, the paper’s findings will assist government agencies and non-governmental organisations in developing outreach programmes for young adults per the strategies outlined in the Twelfth Malaysia Plan and the aspirations pledged in the Malaysian Youth Policy 2015–2035.Supplementary InformationThe online version contains supplementary material available at 10.1057/s41264-023-00234-8.

Financial behaviors are grounded in family financial socialization, and its effects continue well into people’s life course. However, only a handful of studies have addressed dimensionality of family financial socialization practices. Even fewer studies have investigated how different dimensions of financial socialization are linked to financial identity and distal outcomes such as financial behaviors and anxiety. To address this gap, a cross-sectional study was conducted with 481 emerging adults (57.8% women; M age = 20.27, SD age = 1.39). The results suggest that family financial socialization practices are multidimensional and that they have different effects on the outcomes. Specifically, direct parental teaching on money management and openness about family finances are related to favorable outcomes (i.e., higher spending self-control, less impulsive buying, and lower financial anxiety), while experiencing financial distress within a family is related to less favorable outcomes. The results also suggest that financial identity may play an essential role in this process.

PurposeThis study aims to investigate the moderating role of gamification on the relationship of financial attitude (FA), financial self-efficacy (FSE) and financial planning activity (FPA) of individuals on the financial behavior of individuals and also provides a conceptual background on financial management behavior (FMB), FA, FSE and FPA of individuals.Design/methodology/approachA preliminary study with the help of a structured questionnaire was conducted by administering the questionnaire to individuals who are exposed to financial apps on their smart phones or personal computers for various money-saving and investment activities. Help of various financial planners and financial consultants led to successful circulation of the questionnaire to respondents. The research model was tested through structural equation modeling using AMOS-21 software. Firstly, a measurement model was evaluated that comprised five latent constructs, i.e. gamifying features (GF), FA, FSE, FPA and FMB. Subsequently, the structural model consisting of the hypothesized relationships was evaluated.FindingsThe role of GF in financial apps and applications in moderating the influence of FA, FSE and FPA on FMB has not been thoroughly studied in the past literature, and the results of this study show that GF significantly moderate the influence of FA and FPA on the FMB of individuals. However, according to the results GF in financial apps do not have a significant moderating role on the influence of FSE on FMB of individuals.Originality/valueThe studies in the past have not investigated the role of gamification in the area of personal finance of individual investors, specifically their financial behavior in both developed and developing countries. This study addresses this gap by examining the role of gamification in moderating the relationship that exists between FA, FSE, FPA and financial behavior.

The present study tested the Gudmunson and Danes (2011) family financial socialization model (FFSM) using three waves of longitudinal data gathered from a college cohort of emerging adults in the United States. Specifically, we aimed to test the validity of this model in emerging adulthood (Aim 1), to verify whether the effect of the parent's socialization on a child's end financial outcome is mediated by intermediary financial outcomes (Aim 2), and to verify whether the effects found when testing the FFSM are stable across time points (Aim 3). Our findings indicate that of eight paths in the model between family socialization processes and financial socialization outcomes, seven paths were significant, thereby lending support for the validity of FFSM in emerging adulthood (Aim 1). Second, we found no mediation effects of parental financial socialization on emerging adult financial behavior and well-being via the internalization of parents' beliefs, values, and practices (Aim 2). We offer plausible explanations for this result. Last, we verified that the financial socialization processes and their effects are generally invariant across the beginning, the middle, and the end of the emerging adulthood (Aim 3). We interpret our findings in the context of the extant literature on emerging adults' transition to adult independence and provide insights for practice. (PsycInfo Database Record (c) 2024 APA, all rights reserved).