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Spending Today or Saving for Tomorrow: The Influence of Family Financial Socialization on Financial Preparation for Retirement

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  • Scott Payne
  • Jeremy Yorgason
  • Jeffrey Dew

Abstract

Many of the factors that motivate individuals occur within the context of the family, and can be influenced through family socialization processes. To better understand the influence family socialization processes may have on financial capabilities and financial behaviors, 334 married couples were sampled. Structural equation modeling was used to examine both direct and indirect associations. Findings indicated direct relationships between materialism and financial strain, between religiosity and determination of needs, and between financial strain and saving for retirement. Indirect relationships were found between materialism and saving for retirement through financial strain. Our study found evidence to support the Family Financial Socialization theoretical framework. Financial counselors may benefit by understanding how couples socialize each other as they prepare for retirement. Copyright Springer Science+Business Media New York 2014

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  • Scott Payne & Jeremy Yorgason & Jeffrey Dew, 2014. "Spending Today or Saving for Tomorrow: The Influence of Family Financial Socialization on Financial Preparation for Retirement," Journal of Family and Economic Issues, Springer, vol. 35(1), pages 106-118, March.
    • Handle: RePEc:kap:jfamec:v:35:y:2014:i:1:p:106-118
    DOI: 10.1007/s10834-013-9363-2
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    4. Suresh Gopal & Prakash Malliasamy, 2022. "Transformational Impact of COVID-19 on Savings and Spending Patterns of Indian Rural Households," SAGE Open, , vol. 12(1), pages 21582440221, February.
    5. Suh, Ellie, 2022. "Can't save or won't save: financial resilience and discretionary retirement saving among British adults in their thirties and forties," LSE Research Online Documents on Economics 110492, London School of Economics and Political Science, LSE Library.
    6. Luisa R. Blanco & O. Kenrik Duru & Carol M. Mangione, 2020. "A Community-Based Randomized Controlled Trial of an Educational Intervention to Promote Retirement Saving Among Hispanics," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 300-315, June.
    7. Dolores Moreno-Herrero & Manuel Salas-Velasco & José Sánchez-Campillo, 2017. "Individual Pension Plans in Spain: How Expected Change in Future Income and Liquidity Constraints Shape the Behavior of Households," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 596-613, December.

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