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The Financial Behavior of Emerging Adults: A Family Financial Socialization Approach

Author

Listed:
  • Bryce L. Jorgensen

    (New Mexico State University)

  • Damon L. Rappleyea

    (East Carolina University)

  • John T. Schweichler
  • Xiangming Fang

    (East Carolina University)

  • Mary E. Moran

    (East Carolina University)

Abstract

The current study examined the role of attachment insecurity, locus of control, and parental financial communication on the financial behavior of emerging adults from a family financial socialization theory perspective. Data were used from the Emerging Adult Financial Capability Study, the sample consisted of emerging adult college students (N = 321) from a large southeastern university in the United States. Structural equation modeling was used to examine the direct and indirect effects as well as the overall fit of the model that was constructed according to family financial socialization theory. Results suggested that increased attachment insecurity predicted decreased financial communication from parents and a decreased perception of an internal locus of control. Emerging adults who received greater financial instruction (both direct and indirect) and who felt they had a greater ability to influence outcomes in their life engaged in more sound financial behavior. Results also suggested that financial communication and locus of control mediated the relationship between attachment insecurity and financial behavior. The findings supported the inclusion of attachment as an important family relationship variable in the financial socialization process, as well as the structure of a conceptual model of family financial socialization theory.

Suggested Citation

  • Bryce L. Jorgensen & Damon L. Rappleyea & John T. Schweichler & Xiangming Fang & Mary E. Moran, 2017. "The Financial Behavior of Emerging Adults: A Family Financial Socialization Approach," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 57-69, March.
    • Handle: RePEc:kap:jfamec:v:38:y:2017:i:1:d:10.1007_s10834-015-9481-0
    DOI: 10.1007/s10834-015-9481-0
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    References listed on IDEAS

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    4. NDOU, Adam, 2023. "Parental Financial Socialisation And Socioeconomic Status," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 27(1), pages 39-58, March.
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    14. Ashley Larsen Gibby & Logan Pettit & E. Jeffrey Hill & Jeremy Yorgason & Erin Kramer Holmes, 2021. "Implicit and Explicit Childhood Financial Socialization: Protective Factors for Marital Financial Disagreements," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 225-236, June.
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    18. Ferdi Botha & Barbara Broadway & John P. de New & Clement Wong, 2020. "Financial autonomy among emerging adults in Australia," Melbourne Institute Working Paper Series wp2020n30, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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    20. Xiaomin Li & Melissa A. Curran & Ashley B. LeBaron-Black & Bryce Jorgensen & Jeremy Yorgason & Melissa J. Wilmarth, 2023. "Couple-Level Attachment Styles, Finances, and Marital Satisfaction: Mediational Analyses Among Young Adult Newlywed Couples," Journal of Family and Economic Issues, Springer, vol. 44(1), pages 125-142, March.
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