Finance and ambition: parental financial socialization, money scripts, and future orientations among Hong Kong youths in low-SES households

Financial difficulties are significant barriers to developing a strong future orientation among youths from low socioeconomic status (low-SES) households. Future orientation is the envisioning and planning for one’s future. We investigated how parents teaching their children about finances—a process known as parental financial socialization—might influence this future planning. We also examined the possible mediating role of money scripts, which are core beliefs about money management and ownership. We surveyed 1,000 youths from low-SES households in Hong Kong and analyzed the data using structural equation modeling. Our findings on parental financial socialization and four money scripts—money/expenditure avoidance, money evil, materialism, and money conscientiousness—were related to youths’ future orientation. Three statistically indirect associations revealed the implications of high-quality parental financial socialization for facilitating youth’s aspirations for the future. That is, better financial education from parents was related to stronger future orientation via higher money conscientiousness, higher money/expenditure avoidance, and lower money evil. Further, differences emerged between male and female youths. The indirect associations via higher money/expenditure avoidance emerged only among female youths, whereas the indirect association via lower money evil emerged only among male youths. Overall, our study adds to the understanding of the formation of future orientation and underscores the importance of parental financial socialization and money scripts in low-SES households, with the distinct needs of male and female youths highlighted.