Parental financial socialization, financial behaviors, and well‐being among Hong Kong young adults amid COVID‐19

Abstract

AbstractObjectiveWe investigated how parental financial socialization was related to Hong Kong young adults' financial behaviors and well‐being amid COVID‐19.BackgroundWe extended existing literature by including two types of financial behaviors: healthy money management (e.g., spending within budget) and financial enabling (i.e., overgiving and sharing financial resources). We focused on well‐being in financial and nonfinancial domains (i.e., financial well‐being and hopelessness, respectively). We also considered moderating roles of gender, family socioeconomic status (SES), and income changes during COVID‐19.MethodsWe collected cross‐sectional survey data from 604 Hong Kong young adults and conducted structural equation modeling.ResultsParental financial socialization, on the one hand, promoted well‐being via healthier money management. On the other hand, parental financial socialization increased financial enabling and reduced well‐being. The examined associations varied across gender, family SES, and income changes during COVID‐19.ConclusionsParental financial socialization was a “double‐edged” sword, and the examined associations varied for young adults with diverse experiences across gender, family SES, and income changes during COVID‐19.ImplicationsEfforts are needed to strengthen desired consequences and alleviate undesired ones of parental financial socialization. The different needs and experiences of young adults deserve attention.