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Parental transfer of financial knowledge and later credit outcomes among low- and moderate-income homeowners

Listed author(s):
  • Grinstein-Weiss, Michal
  • Spader, Jonathan
  • Yeo, Yeong Hun
  • Taylor, Andréa
  • Books Freeze, Elizabeth
Registered author(s):

    It is well established that acquiring financial skills during childhood is linked with better savings in adulthood. Little is known, however, about the relationship between parental teaching of money management early in life and children's financial outcomes in adulthood. This is particularly true for low- and moderate-income (LMI) households. Using data from Community Advantage Program survey data for 2,389 LMI homeowners, we find that adults who report receiving high levels of money-management teaching in childhood from their parents are associated with higher credit scores and lower credit card debt in adulthood. We also find that the level of parental financial teaching influences the relationship between children's later educational attainment and credit scores. These findings suggest implications for initiatives promoting financial capability for parents and children.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0190-7409(10)00255-0
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    Article provided by Elsevier in its journal Children and Youth Services Review.

    Volume (Year): 33 (2011)
    Issue (Month): 1 (January)
    Pages: 78-85

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    Handle: RePEc:eee:cysrev:v:33:y:2011:i:1:p:78-85
    Contact details of provider: Web page: http://www.elsevier.com/locate/childyouth

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