The intermix of affect, perception and familism in African American financial well-being

Abstract

PurposeGiven that African Americans are at the bottom of household income, understanding how individuals can improve their financial well-being is critical. Cultural background influences family financial socialization processes, with cultural values shaping family roles and communication patterns. This study explores African Americans’ financial well-being by examining how the intermix of affect, perception and familism influences financial intentions.Design/methodology/approachThe study analyzes the value–attitude–behavior hierarchy, the impact of subjective financial knowledge on financial behaviors and perceived behavioral control among African Americans. The research sample comprised 346 African Americans of a broad range of ages. A partial least squares structural equation model (SmartPLS 3) was used for the analysis.FindingsThe study found a positive and significant influence of the cultural value of familism on financial attitudes, consistent with previous studies. The influence of the cultural value of familism on financial well-being through financial attitudes without further mediation was found to be positive but insignificant. The influence of the cultural value of familism on perceived control was shown to have an insignificant impact on financial well-being, which is inconsistent with previous literature on the value–attitude–behavior hierarchy; this is particularly relevant among African Americans.Originality/valueThe findings illustrate the importance of the positive impact of interpersonal family relationships on actual financial behaviors (intentions), allowing individuals to improve their financial situations. However, subjective financial knowledge lacks significance when mediated through the influence of financial intentions on financial well-being.