Financial Socialization Research Articles

Family Financial Socialization : Impact of Scholarship Payments on Research Scholars’ Financial Behaviour and Financial Well-Being

Family Financial Socialization : Impact of Scholarship Payments on Research Scholars’ Financial Behaviour and Financial Well-Being

Financial Socialisation and Promotion of Financial Inclusion, among Women Self-Help Group Members: An analysis

India, a country of diversities has travelled a long way in the process of achieving inclusive growth through financial inclusion. The expedition has started from bank nationalisation in the year 1969 to flagship programs like SHG bank Linkage and PMDJY. Historically, women in India have faced various socio-economic challenges, including limited access to financial services and opportunities. To address these challenges and promote the financial inclusion of women, several initiatives and measures have been taken at the government, regulatory, and institutional levels. The PMJDY accounts have shown a remarkable growth in account openings. Around 50.09 Crore Jan Dhan accounts opened as of Aug 2023 where average deposits rise from Rs.1065 crore in 2015 to Rs.4087 Crore in 2023,nearly 3 times over Aug 2015. Around 56% of such accounts are owned by woman, whereas 67% of the accounts are owned by women in rural and semi urban areas (PIB 2023)[i]. But what is more discouraging is that India has the highest in inactive accounts which is 35% globally. In developing economies, women account owners are, on average, 5 percentage points more likely than men are inactive, in India the deviation is highest that is 12 %.Out of the women owned accounts, more than 32% are inactive. The usage of accounts also indicates a different saga as most of them is used for withdrawals of salary or wages, emergencies, or availing Govt. Benefits which leads to a lowering of financial inclusion among the women (Global Findex database 2021)[ii].
 
 It's important to note that despite many advancements achieved by the country with respect to the financial inclusion of women through initiations like PMJDY, introduction of a range of women-centric financial products, such as savings accounts, fixed deposits, and insurance policies, often with special features and incentives, SHGs movements, development of digital financial ecosystem for women in rural areas to access financial services through mobile banking and digital wallets, undertaking financial literacy programs and campaigns aimed at women for improving their financial knowledge and decision-making capabilities, legal reforms related to property rights and inheritance rights, support for Women Entrepreneurs including access to credit, training, and mentorship, and by allocating funds specifically for women's welfare and empowerment through gender budgeting, the challenges still prevailing. The gender gap in financial inclusion still exist, with women in rural and marginalized communities facing more significant barriers. Social and cultural factors, limited financial literacy, and the persistence of gender-based violence in some regions were among the ongoing challenges (Fletschner & Kenney, 2011[iii]). The need for ongoing education and awareness programs, addressing gender biases, and expanding access to financial services in remote areas etc. remain the priorities of the policy makers. Achieving full financial inclusion for women in India requires a multi-faceted approach involving government policies, financial institutions, civil society organizations, and the active participation of women themselves. It is essential for both economic development and gender equality (Duflo, 2012[iv]; Bucciol et.al, 2022[v]).

Parental Financial Socialisation of Young Black African Adults in South Africa

Purpose: Parental financial socialisation is necessary to help young adults to effectively manage their finances and improve their financial well-being. This study examined parental financial socialisation of young black African adults by their parents in rural and low-income area in South Africa.
 Design/methodology/approach: Parental financial socialisation was measured through parental financial behaviour, parental financial monitoring, parental financial discussions, parental financial communications, and parental finan-cial teaching. This study adopted quantitative research approach and self-administered questionnaire to collect data from young black African adults in Fetakgomo Tubatse and Intsika Yethu municipalities because these municipal-ities are the most rural and low-income areas in South Africa. Descriptive statistics were used to analyse data. The composite score was calculated to determine parental financial socialisation.
 Findings: The overall score of Parental financial socialisation was 53%, which is moderate. Thus, young black African adults are financially socialised by their parents. This result was surprising as parents in rural and low-income areas uphold cultural norms and values and consider discussing certain issues like money with children a taboo.
 Research limitations/implications: Due to the low levels of general literacy among the respondents, which neg-atively affected data collection; some young adults did not understand the questionnaire and withdrew from partic-ipating in the study. Furthermore, even though confidentiality and anonymity were guaranteed, respondents were reluctant to participate in the study. They feared exposing their financial position and displayed a lack of trust.
 Originality/value: This study is the first to investigate parental financial socialisation of young black African adults in rural and low-income area in South Africa. This study concluded by providing recommendations and suggestions for future research.

The Effect of Family Financial Socialization on Financial Self-Efficacy Mediated by Financial Knowledge and Financial Skills

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.

Family financial socialization during emerging adulthood: Insights from a cross-lagged panel model.

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).

The Influence Of Financial Socialization, Overconfidence And Mental Accounting On Investment Decisions

This study examines the effect of financial socialisation, herding, overconfidence and mental accounting on investment decisions among stock investors in Jakarta. The sample in the study is stock investors who reside in Jakarta. The purposive sampling method collected 205 respondents through Google Forms distributed online on social media. The research data were analysed with a structural equation system using SmartPLS.3.2.9 software. The results showed that financial socialisation positively and significantly influences Generation Z's investment decisions in Jakarta. Overconfidence positively and significantly influences Generation Z's investment decisions in Jakarta. Mental accounting has a positive and significant influence on the investment decisions of Generation Z in Jakarta.

College Student’s Financial Well-Being on Java Island: The Role of Financial Literacy, Financial Behavior, and Financial Socialization

After graduating from college, a student's financial situation is critical since it impacts their general level of contentment with life. This study used financial behavior among university students on Java Island to investigate the impact of financial socialization and literacy on financial well-being. This kind of study uses a non-probability sampling method and quantitative methods, involving 134 students in Java Island data processing procedures with Smart PLS. The findings revealed that financial socialization and financial literacy are favorably related to financial well-being. Financial literacy and financial socialization positively affected both financial behavior and financial well-being. Financial conduct acts as a mediating variable between financial well-being, financial literacy, and financial socialization, which both have a favorable impact.

Methods Used in Developing Financial Awareness among Primary School Children as Perceived by Parents

The study aimed to identify the methods used to developing financial awareness and the obstacles among children in the primary classes as perceived by parents. Besides, it showed the differences among the sample according to the parent's gender, their educational qualifications, the student's gender, and the school type (public, private). Therefore, the study used the descriptive survey method, and the two researchers developed a questionnaire that was applied to a sample of (357) parents of primary pupils in public and private schools at Abha city. The results showed that experiential learning and storytelling were the methods that sample used with their children. However, the obstacles they face were the negative impact of social media on motivating their children's financial awareness. Also, there is no statistically significant differences between the methods used and the obstacles they face attributed to the parent's and pupil’s gender. However, there is a statistically significant differences between the methods used attributed to educational qualification, in favor of the parents who have a diploma and to the public-school type for pupils. Accordingly, the study recommended developing training programs for parents concerned with encouraging financial awareness for primary school children. Keywords: financial awareness, early childhood, parents, family, financial socialization.

FINANCIAL MANAGEMENT BEHAVIOR PADA PENGGUNA PAYLATER DALAM PERSPEKTIF THEORY OF PLANNED BEHAVIOR

The purpose of this study was to determine the financial management behavior of employees in the administrative department of a retail company in Malang. This study uses quantitative methods and a Likert scale for the measurement scale. The independent variable consists of financial knowledge, financial socialization and financial experience, while the dependent variable is financial management behavior. The total number of active respondents using paylater was obtained by 96 respondents by distributing questionnaires online. The results showed that financial knowledge had a positive effect on financial management behavior, while financial socialization and financial experience had no effect on financial management behavior. The ability to manage finances can influence an individual's financial condition in the future. This study can be useful as a reference for various parties, especially Paylater users to be wiser in making financial decisions and to be able to improve good financial management behavior.
 
 Keywords: Financial Knowledge, Financial Socialization, Financial Experience, Financial Management Behavior

THE INFLUENCE OF LOCUS OF CONTROL, LIFESTYLE, AND FINANCIAL SOCIALIZATION, ON FINANCIAL MANAGEMENT BEHAVIOR IN SHOPEE PAYLATER USER STUDENTS

The younger generation, including university students, is a generation that is not good at managing their finances. This is because today's young generation has a different lifestyle from previous generations. This generation tends to have a more extravagant lifestyle and find it difficult to save. This habit will certainly result in financial risks that will be faced in the future, due to poor financial management. So that this research aims to see how the influence of locus of control on the financial management behavior of student users of Shopee paylater. The influence of lifestyle on the financial management behavior of Shopee paylater user students. As well as the influence of financial socialization on the financial management behavior of student users of Shopee paylater. The object of this research is students in the city of Surabaya with a sample size of 101 respondents. The sample was obtained using purposive sampling method. The data analysis technique used is multiple linear regression. The first result obtained is that there is a significant positive effect of locus of control on financial management behavior. The second result obtained is that there is no significant effect of lifestyle on financial management behavior. And the third result obtained is that there is no significant effect of financial socialization on financial management behavior

Enhancing ¬nancial well-being by -ntech: Assessing mediator - moderator impacts

Purpose - This study explores the factors shaping the relationship between the intention to use and the actual using behavior of Fintech services in the context of economic fluctuation. The main aim is to shed light on the intricacies of this relationship and contribute valuable insights to the field. Design/Methodology/Approach - We selected SmartPLS 4.0 software to process the collected data and applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess hypotheses and relationships between potential variables. Findings - We found that the intention to use Fintech positively affects Using Fintech Behavior, which subsequently influences Financial Well-Being (FWB). Additionally, we also found the moderation effect of Financial Literacy (FL) and Resistance to Change (RC) on these relationships through Using Fintech Behavior (UFB), Financial Socialization (FS), and Intention to use Fintech (IT) impact FWB. Surprisingly, UFB does not function as a mediator in relationships involving FL, Financial Stress (FSt), and FWB. Practical implications - The findings’ results indicate that the Fintech service market in Vietnam is not yet diverse, not completely separated from communication services, and the habit of using cash still exists. In addition, despite having financial socialization, financial literacy, and intention to use Fintech, users are still not ready for innovation and the adoption of financial technology. This study suggests that Fintech service developers need to strengthen incentive policies and develop services towards geographic segmentation. Originality - The study could be considered one of the first studies in Vietnam to discuss how to enhance financial well-being at the individual level, especially in evaluating how using Fintech could affect financial well-being. It concludes that Financial Literacy and Financial Socialization are two noticeable factors that might impact Financial Well-being, and Using Fintech is a key to thriving Financial Well-being. Keywords Financial literacy, financial socialization, financial stress, financial well-being.

성장기 가정 금융사회화가 성인기 개인연금 계좌관리에 미치는 영향 : 주관적 및 객관적 금융지식 매개효과를 중심으로

성장기 가정 금융사회화가 성인기 개인연금 계좌관리에 미치는 영향 : 주관적 및 객관적 금융지식 매개효과를 중심으로

Big Five Traits, Entrepreneurial Awareness, and Financial Socialization Impacting Vocational High School Entrepreneurial Intentions

Big Five Traits, Entrepreneurial Awareness, and Financial Socialization Impacting Vocational High School Entrepreneurial Intentions

Financial Self-Efficacy as a Mediator Between Financial Socialization, Early Childhood Consumer Experiences, and Financial Well-Being

This study used financial socialization theory to examine the direct and indirect association between financial socialization (from parents, peers, and teachers) and financial well-being (FWB) via financial self-efficacy (FSE). Data were collected from Pakistan in early 2020. Our data analysis using the partial least square structural equation modeling approach revealed surprising results. We found that an association between financial socialization from peers and FWB does not exist both directly and indirectly via FSE. Furthermore, the results showed that the association of financial socialization from parents and teachers with FWB is completely mediated by FSE. Other results indicated partial mediation of FSE in the association between early childhood consumer experience and FWB. Our findings imply that learning from others’ financial experiences builds young consumers' confidence in dealing with financial matters, which, in turn, helps improve their FWB. We suggest policymakers to consider these findings in designing policies related to the young consumers of developing nations.

Migration and Financial Well-being: The Impact of Acculturation and Financial Socialization with Mediating Role of Financial Behavior

The dilemma of the large population of Indonesia being disproportionate to the number of jobs available in the country has resulted in international migration to achieve household financial well-being, and most immigrants 55% of immigrants migrate to Malaysia (World Bank, 2017). This study aims to measure whether acculturation and financial socialization influence financial well-being mediated by financial behavior among Indonesian immigrant housewives from South Sulawesi in Sabah, Malaysia. This research uses the Partial Least Square path modeling technique, and 384 respondents showed that acculturation and financial socialization significantly affected financial behavior. Financial behavior has a significant impact on financial well-being. In addition, financial behavior significantly mediates acculturation, financial socialization, and financial well-being. The results of this research can help the government and palm oil plantations to create policies and possible intervention programs to help Indonesian immigrants manage their financial behavior in order to achieve financial well-being through financial literacy programs, holding outreach to their workers to be careful in managing finances such as not getting caught up in online lending practices that are currently widespread, reducing consumptive shopping behavior non-essential, and facilitate pension programs not only for Malaysian citizens but also Indonesian citizens.

“Their reality is different”: On the Intersection of Racial and Financial Socialization

“Their reality is different”: On the Intersection of Racial and Financial Socialization

The Influence of Financial Literacy and Financial Socialization on the Financial Management Behavior of Investors in Indonesia After the Covid 19 Pandemic

Financial intelligence is a term used to describe the capacity to organize and manage money that is determined as one of the indicators of a person's success in managing their finances. Maximizing the value of money that a person has is being able to manage their finances well. In addition, good money management will protect a person from possible difficulties that occur. The purpose of this study is to determine the effect of financial literacy and financial socialization on the financial management behavior of investors in the Greater Bekasi area after the Covid-19 pandemic. This study uses a quantitative approach and data sources from distributing questionnaires to all investors in the Greater Bekasi area as many as 100 respondents to determine the impact of financial literacy and financial socialization on the financial management behavior of investors in the Greater Bekasi area after the Covid-19 pandemic. With the help of the SmartPLS software program and testing the outer model and inner model, data analysis was carried out using the SEM method. The results of this study indicate that financial literacy and financial socialization have an influence on financial management behavior, with P-values of 0.000 and 0.093, respectively

THE INFLUENCE OF FINANCIAL CONFIDENCE, FINANCIAL SOCIALIZATION, HERDING, AND MENTAL ACCOUNTING ON INVESTMENT DECISION AMONG GENERATION Z IN JAKARTA

This research purpose is to examine the influence of financial confidence, financial socialization, herding, and mental accounting on investment decision among Generation Z in Jakarta. The samples for this research are investors who were born between 1995-2010 (Generation Z) and living in Jakarta. The cluster sampling method was used to collect 205 respondents from a survey that was shared online on social media through google forms. The data of this research is analyzed through the use of a structural equation system using the SmartPLS.3.2.9 program. The result of this research shows that the investment decision of Gen Z investors in Jakarta is significantly influenced by financial confidence, financial socialization, herding, and mental accounting. This research also found that a lower frequency of trading which happens in Gen Z investors tends to overcome the negative impact of herding.

Exploring Literature on Financial Socialization – A Bibliometric Analysis

In the past few years, extensive research has focused on comprehending the influence of financial socialization on people's financial habits and overall welfare, indicating a substantial convergence in the area. This article bases itself on a review of literature of prior research, using selected keywords to search the SCOPUS database. Further, the Bibliometrix R package was utilized for the analysis to ensure comprehensive results. The significant themes identified are public attitude, financial system, sustainability, and financial education. The present research sheds light on the growing importance of financial socialization and its various domains which is yet to be explored by theoreticians and practitioners from various countries.

Factors affecting financial management behavior of Paylater users in Indonesia: Examining the moderating role of locus of control

Financial Management Behavior refers to the systematic activities involved in predicting, gathering, allocating, investing, and strategizing the cash flow required for a company’s or individual’s efficient functioning. This study aims to examine the role of locus of control in moderating the relationship between financial socialization, financial knowledge, financial experience, and financial management behavior among Paylater users in Medan, North Sumatra, Indonesia. The population of this research is the people of Medan, North Sumatra, Indonesia, who use Paylater. The sampling methodologies utilized were purposive sampling and snowball sampling. A total of 221 individuals participated in data collection for this study. The questionnaires were disseminated using social media chat functions or messaging applications (e.g., WhatsApp, Line, Telegram) in which the Google Forms link is shared. The study employs the data analysis technique of SEM-PLS with the assistance of PLS 4.00 software. The research results show that financial socialization, knowledge, and experience influence financial management behavior (p < 0.05). Furthermore, financial socialization, financial knowledge, and financial experience influence financial management behavior, moderated by locus of control (p < 0.05). The research implications are expected to improve the Financial Management behavior of the Paylater users by providing literacy about managing their finances. AcknowledgmentThis study was funded by the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara following the assignment agreement letter in the context of implementing the Basic Research Program of the Revenue and Expenditure Budget of the Universitas Muhammadiyah Sumatera Utara for the 2023 Fiscal Year, Number: 73/II.3- AU /UMSU-LP2M/C/2023.