Parents’ financial socialization or socioeconomic characteristics: which has more influence on Gen-Z’s financial wellbeing?

Abstract

This research aims to explore the effectiveness of various approaches for promoting financial wellbeing among Gen-Z, with a particular focus on the parental role in shaping financial attitudes and behavior, using the theoretical lens of family financial socialization theory. The study utilized a mixed-methods approach to obtain in-depth findings on parental financial socialization and parental socioeconomic characteristics for Gen-Zs’ financial wellbeing. The qualitative findings revealed that parents use different strategies to financially socialize children by involving them in savings, financial decisions, and household and personal finances. Furthermore, it is found that parents are more inclined to teach daughters than sons about finances because of the expectations that females handle the household finances. Likewise, quantitative findings revealed that the father’s education level negatively influences Gen-Z’s financial attitude. This study strengthens the concept of family socialization and establishes a ground to explore potential mechanisms of action and implications for future research and practice.