IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v43y2022i2d10.1007_s10834-021-09797-x.html
   My bibliography  Save this article

The Association of Financial Socialization with Financial Self-Efficacy and Autonomy: A Study of Young Students in India

Author

Listed:
  • Jariwala Harsha Vijaykumar

    (IES’s Management College and Research Centre)

Abstract

The idea that young students learn a wide range of financial beliefs, attitudes, and behaviors from family members supports the theory that family communication about money plays a key role in developing certain sets of financial behaviors in the young students that they can use more broadly in adulthood. However, less is known about the relationship between this financial socialization and financial self-efficacy and financial autonomy, which is the subject of this study. Financial socialization is an independent variable comprising four attributes: financial discussion with parents, financial discussion with peers, observation of parents’ financial behavior, and observation of peers’ financial behavior. Financial self-efficacy and financial autonomy act as dependent variables. The primary data is collected from 1300 post-graduate and undergraduate students enrolled in colleges across three states of India across various disciplines, are the young students who are the users of financial products and services. I use two multiple regression models. The first explains the positive association between attributes of financial socialization and significant predictors of financial self-efficacy, while the second finds that the observation of peers’ financial behavior is a nonsignificant predictor for financial autonomy in the context of Indian young students. The results also show that among all significant predictors, financial discussion is a comparatively more influencing variable than others. The results of this research study will be useful to policymakers, counselors, and education providers in their framing and development of financial education programs based on family financial socialization.

Suggested Citation

  • Jariwala Harsha Vijaykumar, 2022. "The Association of Financial Socialization with Financial Self-Efficacy and Autonomy: A Study of Young Students in India," Journal of Family and Economic Issues, Springer, vol. 43(2), pages 397-414, June.
    • Handle: RePEc:kap:jfamec:v:43:y:2022:i:2:d:10.1007_s10834-021-09797-x
    DOI: 10.1007/s10834-021-09797-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-021-09797-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10834-021-09797-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Clinton Gudmunson & Sharon Danes, 2011. "Family Financial Socialization: Theory and Critical Review," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 644-667, December.
    2. Daniel Fernandes & John G. Lynch & Richard G. Netemeyer, 2014. "Financial Literacy, Financial Education, and Downstream Financial Behaviors," Management Science, INFORMS, vol. 60(8), pages 1861-1883, August.
    3. Ward, Scott, 1974. "Consumer Socialization," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 1(2), pages 1-14, Se.
    4. Moschis, George P, 1985. "The Role of Family Communication in Consumer Socialization of Children and Adolescents," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(4), pages 898-913, March.
    5. Jinhee Kim & Jaslean LaTaillade & Haejeong Kim, 2011. "Family Processes and Adolescents’ Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 668-679, December.
    6. Grohmann, Antonia & Kouwenberg, Roy & Menkhoff, Lukas, 2015. "Childhood roots of financial literacy," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 114-133.
    7. Sigrid Luhr, 2018. "How Social Class Shapes Adolescent Financial Socialization: Understanding Differences in the Transition to Adulthood," Journal of Family and Economic Issues, Springer, vol. 39(3), pages 457-473, September.
    8. Churchill, Gilbert A, Jr & Moschis, George P, 1979. "Television and Interpersonal Influences on Adolescent Consumer Learning," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 6(1), pages 23-35, June.
    9. Annamaria Lusardi & Olivia S. Mitchell & Vilsa Curto, 2009. "Financial Literacy among the Young: Evidence and Implications for Consumer Policy," NBER Working Papers 15352, National Bureau of Economic Research, Inc.
    10. Annamaria Lusardi & Olivia S. Mitchell & Vilsa Curto, 2009. "Financial Literacy among the Young," Working Papers wp191, University of Michigan, Michigan Retirement Research Center.
    11. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    12. Sharon Danes & Katherine Brewton, 2014. "The Role of Learning Context in High School Students’ Financial Knowledge and Behavior Acquisition," Journal of Family and Economic Issues, Springer, vol. 35(1), pages 81-94, March.
    13. Andrea Hetling & Judy L. Postmus & Cecilia Kaltz, 2016. "A Randomized Controlled Trial of a Financial Literacy Curriculum for Survivors of Intimate Partner Violence," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 672-685, December.
    14. John, Deborah Roedder, 1999. "Consumer Socialization of Children: A Retrospective Look at Twenty-Five Years of Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(3), pages 183-213, December.
    15. María C. Fuentes & Oscar F. Garcia & Fernando Garcia, 2020. "Protective and Risk Factors for Adolescent Substance Use in Spain: Self-Esteem and Other Indicators of Personal Well-Being and Ill-Being," Sustainability, MDPI, vol. 12(15), pages 1-17, July.
    16. Bryce L. Jorgensen & Diane Foster & Jakob F. Jensen & Elisabete Vieira, 2017. "Financial Attitudes and Responsible Spending Behavior of Emerging Adults: Does Geographic Location Matter?," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 70-83, March.
    17. Webley, Paul & Nyhus, Ellen K., 2006. "Parents' influence on children's future orientation and saving," Journal of Economic Psychology, Elsevier, vol. 27(1), pages 140-164, February.
    18. Margaret Sherraden & Lissa Johnson & Baorong Guo & William Elliott, 2011. "Financial Capability in Children: Effects of Participation in a School-Based Financial Education and Savings Program," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 385-399, September.
    19. Ashok Thomas & Luca Spataro, 2018. "Financial Literacy, Human Capital and Stock Market Participation in Europe," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 532-550, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Azra Zaimovic & Anes Torlakovic & Almira Arnaut-Berilo & Tarik Zaimovic & Lejla Dedovic & Minela Nuhic Meskovic, 2023. "Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends," Sustainability, MDPI, vol. 15(12), pages 1-30, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ashley B. LeBaron & Heather H. Kelley, 2021. "Financial Socialization: A Decade in Review," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 195-206, July.
    2. Geert Van Campenhout, 2015. "Revaluing the Role of Parents as Financial Socialization Agents in Youth Financial Literacy Programs," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 186-222, March.
    3. Clinton Gudmunson & Sharon Danes, 2011. "Family Financial Socialization: Theory and Critical Review," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 644-667, December.
    4. Mohamad Fazli Sabri & Rusitha Wijekoon, 2020. "The Influence of Gender and Ethnicity on Young Adults’ Participation in Financial Education Programme," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 9(1), pages 159-159, March.
    5. Ning Tang, 2017. "Like Father Like Son: How Does Parents' Financial Behavior Affect Their Children's Financial Behavior?," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 284-311, July.
    6. Michael Gutter & Zeynep Copur & Selena Garrison, 2009. "Which Students Are More Likely to Experience Financial Socialization Opportunities? Exploring the Relationship between Financial Behaviors and Financial Well-Being of College Students," NFI Working Papers 2009-WP-07, Indiana State University, Scott College of Business, Networks Financial Institute.
    7. Zeynep ÇOPUR & Michael S. GUTTER, 2011. "Financial Socialization of College Students: A Comparison of University Students in Ankara and Florida," Sosyoekonomi Journal, Sosyoekonomi Society, issue 16(16).
    8. Sigrid Luhr, 2018. "How Social Class Shapes Adolescent Financial Socialization: Understanding Differences in the Transition to Adulthood," Journal of Family and Economic Issues, Springer, vol. 39(3), pages 457-473, September.
    9. Terri Friedline & Stacia West, 2016. "Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 649-671, December.
    10. Grohmann, Antonia & Kouwenberg, Roy & Menkhoff, Lukas, 2015. "Childhood roots of financial literacy," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 114-133.
    11. Vytautas Dikcius & Anahit Armenakyan & Sigitas Urbonavicius & Gintare Jonyniene & Justina Gineikiene, 2014. "The Influence Of Children On Family Purchasing In Lithuania And Azerbaijan," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 5(2).
    12. Zhu, Alex Yue Feng, 2019. "School financial education and parental financial socialization: Findings from a sample of Hong Kong adolescents," Children and Youth Services Review, Elsevier, vol. 107(C).
    13. Gina Chowa & Mathieu Despard, 2014. "The Influence of Parental Financial Socialization on Youth’s Financial Behavior: Evidence from Ghana," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 376-389, September.
    14. Saeed Pahlevan Sharif & Ashraf Sadat Ahadzadeh & Jason James Turner, 2020. "Gender Differences in Financial Literacy and Financial Behaviour Among Young Adults: The Role of Parents and Information Seeking," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 672-690, December.
    15. Anita I. Drever & Elizabeth Odders-White & Charles W. Kalish & Nicole M. Else-Quest & Emily M. Hoagland & Emory N. Nelms, 2015. "Foundations of Financial Well-Being: Insights into the Role of Executive Function, Financial Socialization, and Experience-Based Learning in Childhood and Youth," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 13-38, March.
    16. Cagri Yalkin & Richard Rosenbaum-Elliott, 2014. "Talking Fashion in Female Friendship Groups: Negotiating the Necessary Marketplace Skills and Knowledge," Journal of Consumer Policy, Springer, vol. 37(2), pages 301-331, June.
    17. Han-Jen Niu, 2017. "Cyber purchasing behavior of adolescents: family communication relationships and parental influence," Electronic Commerce Research, Springer, vol. 17(3), pages 495-519, September.
    18. Ji Hyun Kim & Julia Torquati, 2019. "Financial Socialization of College Students: Domain-General and Domain-Specific Perspectives," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 226-236, June.
    19. David B. Allsop & McKay N. Boyack & E. Jeffrey Hill & Christoffer L. Loderup & Joshua E. Timmons, 2021. "When Parenting Pays Off: Influences of Parental Financial Socialization on Children’s Outcomes in Emerging Adulthood," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 545-560, September.
    20. Ashley B. LeBaron & E. Jeffrey Hill & Christina M. Rosa & Travis J. Spencer & Loren D. Marks & Joshua T. Powell, 2018. "I Wish: Multigenerational Regrets and Reflections on Teaching Children About Money," Journal of Family and Economic Issues, Springer, vol. 39(2), pages 220-232, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jfamec:v:43:y:2022:i:2:d:10.1007_s10834-021-09797-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.