The impact of parental financial socialisation on financial attitude of young black African adults in rural and low-income area in South Africa

Abstract

This study investigated the impact of parental financial socialisation on financial attitude of young black African adults in rural and low-income area in South Africa through quantitative research approach, survey design and self-administered questionnaire. Data was collected from young black African adults in Fetakgomo Tubatse and Intsika Yethu local municipalities, low-income and rural areas in South Africa. Multiple regression analysis was used to test the relationship between parental financial behaviour, parental financial monitoring, parental financial discussion, parental financial communication, and parental financial teaching with financial attitude. The results showed that parental financial communication and parental financial teaching had a significant positive relationship with financial attitude. While parental financial behaviour, parental financial monitoring and parental financial discussion had no significant positive relationship with financial attitude. Therefore, the overall results indicated that parental financial socialisation has no impact on financial attitude of young black African adults in rural and low-income area in South Africa. This study provided recommendations to parents, young black African adults, financial educators, financial services institutions, financial counsellors and the government.