IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v46y2025i2d10.1007_s10834-024-09956-w.html
   My bibliography  Save this article

‘This is How you Will Make It’: Mothers, Othermothers, and Black Women’s Family Financial Socialization

Author

Listed:
  • Kathryn Wiley

    (University of Texas at Austin)

Abstract

This study uses the theories of financial tool-kits and family financial socialization to examine the messages Black women received about money from their caregivers during their childhoods. Prior studies show there are race and gender wealth gaps due to structural factors and that there is stratification by race and gender in financial knowledge and behavior outcomes. This study explores how Black families socialize their daughters about money and how this shapes their financial knowledge and behavior in middle adulthood. I use interviews with 28 Black women to demonstrate the content and methods Black parents used during participant’s upbringings to teach them about money management. I found women elders play a significant role in developing participants’ financial skills and knowledge. They do this primarily through modeling and experiential learning while direct communication was used for lessons on combining resources with a romantic partner. The findings show how Black families transfer the financial knowledge they have to prepare the next generation while operating under the constraints of financial exclusion.

Suggested Citation

  • Kathryn Wiley, 2025. "‘This is How you Will Make It’: Mothers, Othermothers, and Black Women’s Family Financial Socialization," Journal of Family and Economic Issues, Springer, vol. 46(2), pages 397-410, June.
    • Handle: RePEc:kap:jfamec:v:46:y:2025:i:2:d:10.1007_s10834-024-09956-w
    DOI: 10.1007/s10834-024-09956-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-024-09956-w
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10834-024-09956-w?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

    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. Annamaria Lusardi & Olivia S. Mitchell, 2008. "Planning and Financial Literacy: How Do Women Fare?," American Economic Review, American Economic Association, vol. 98(2), pages 413-417, May.
    3. Francine D. Blau & John W. Graham, 1990. "Black-White Differences in Wealth and Asset Composition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 321-339.
    4. Ryan M. Goodstein & Alicia Lloro & Sherrie L.W. Rhine & Jeffrey M. Weinstein, 2021. "What accounts for racial and ethnic differences in credit use?," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(2), pages 389-416, June.
    5. Kenneth White & Kimberly Watkins & Megan McCoy & Bertranna Muruthi & Jamie Lynn Byram, 2021. "How Financial Socialization Messages Relate to Financial Management, Optimism and Stress: Variations by Race," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 237-250, June.
    6. 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.
    7. Fisher, Patti J. & Yao, Rui, 2017. "Gender differences in financial risk tolerance," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 191-202.
    8. Bucciol, Alessandro & Veronesi, Marcella, 2014. "Teaching children to save: What is the best strategy for lifetime savings?," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 1-17.
    9. Tzu-Chin Peng & Suzanne Bartholomae & Jonathan Fox & Garrett Cravener, 2007. "The Impact of Personal Finance Education Delivered in High School and College Courses," Journal of Family and Economic Issues, Springer, vol. 28(2), pages 265-284, June.
    10. Maury Gittleman & Edward N. Wolff, 2004. "Racial Differences in Patterns of Wealth Accumulation," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    11. Grinstein-Weiss, Michal & Spader, Jonathan & Yeo, Yeong Hun & Taylor, Andréa & Books Freeze, Elizabeth, 2011. "Parental transfer of financial knowledge and later credit outcomes among low- and moderate-income homeowners," Children and Youth Services Review, Elsevier, vol. 33(1), pages 78-85, January.
    12. Christina J. Cross, 2018. "Extended family households among children in the United States: Differences by race/ethnicity and socio-economic status," Population Studies, Taylor & Francis Journals, vol. 72(2), pages 235-251, May.
    13. 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.
    14. Raquel Fonseca & Kathleen J. Mullen & Gema Zamarro & Julie Zissimopoulos, 2012. "What Explains the Gender Gap in Financial Literacy? The Role of Household Decision Making," Journal of Consumer Affairs, Wiley Blackwell, vol. 46(1), pages 90-106, March.
    15. Rose Brewer & Cecilia Conrad & Mary King, 2002. "The Complexities and Potential of Theorizing Gender, Caste, Race, and Class," Feminist Economics, Taylor & Francis Journals, vol. 8(2), pages 3-17.
    16. Lynne Borden & Sun-A Lee & Joyce Serido & Dawn Collins, 2008. "Changing College Students’ Financial Knowledge, Attitudes, and Behavior through Seminar Participation," Journal of Family and Economic Issues, Springer, vol. 29(1), pages 23-40, March.
    17. William A. Darity & Darrick Hamilton, 2017. "The Political Economy of Education, Financial Literacy, and the Racial Wealth Gap," Review, Federal Reserve Bank of St. Louis, vol. 99(1), pages 59-76.
    18. Neil Bhutta & Andrew C. Chang & Lisa J. Dettling & Joanne W. Hsu, 2020. "Disparities in Wealth by Race and Ethnicity in the 2019 Survey of Consumer Finances," FEDS Notes 2020-09-28-2, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

    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. Man Yao & Tori I. Rehr & Erica P. Regan, 2023. "Gender Differences in Financial Knowledge among College Students: Evidence from a Recent Multi-institutional Survey," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 693-713, September.
    2. Gerrans, Paul, 2021. "Undergraduate student financial education interventions: Medium term evidence of retention, decay, and confidence in financial literacy," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    3. Elise Frølich Furrebøe & Ellen Katrine Nyhus & Andrew Musau, 2023. "Gender differences in recollections of economic socialization, financial self‐efficacy, and financial literacy," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 69-91, January.
    4. Adam Ndou & Sam Ngwenya, 2022. "The Influence of Parental Financial Socialization on Young Black African Adults’ Financial Behavior," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 10(4), pages 120-134.
    5. Renata Legenzova & Gintarė Leckė, 2025. "The Link between Family Financial Socialization in Adulthood and Investment Literacy of P2P Investors," Journal of Family and Economic Issues, Springer, vol. 46(2), pages 525-544, June.
    6. Steve Agnew & Valerie A. Sotardi, 2024. "Family Financial Socialisation and its Impact on Financial Confidence, Intentions, and Behaviours among New Zealand Adolescents," Working Papers in Economics 24/05, University of Canterbury, Department of Economics and Finance.
    7. Ning Tang & Andrew Baker & Paula C. Peter, 2015. "Investigating the Disconnect between Financial Knowledge and Behavior: The Role of Parental Influence and Psychological Characteristics in Responsible Financial Behaviors among Young Adults," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(2), pages 376-406, July.
    8. Andrea Lučić & Dajana Barbić & Marija Uzelac, 2020. "The Role of Financial Education in Adolescent Consumers’ Financial Knowledge Enhancement," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 32(SI), pages 115-130.
    9. Steve Agnew & Valerie A. Sotardi, 2025. "Family Financial Socialisation and its Impact on Financial Confidence, Intentions, and Behaviours among New Zealand Adolescents," Journal of Family and Economic Issues, Springer, vol. 46(1), pages 246-258, March.
    10. Yesenia Alvarez Padilla & Cäzilia Loibl & Barbara Boone, 2025. "Money Talks: Testing a Series of Financial Literacy Modules to Encourage Financial Conversations in Middle School Families," Journal of Family and Economic Issues, Springer, vol. 46(1), pages 1-20, March.
    11. Moreno-Herrero, Dolores & Salas-Velasco, Manuel & Sánchez-Campillo, José, 2018. "Factors that influence the level of financial literacy among young people: The role of parental engagement and students' experiences with money matters," Children and Youth Services Review, Elsevier, vol. 95(C), pages 334-351.
    12. 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.
    13. Oscar A. Stolper & Andreas Walter, 2017. "Financial literacy, financial advice, and financial behavior," Journal of Business Economics, Springer, vol. 87(5), pages 581-643, July.
    14. Kenneth White & Kimberly Watkins & Megan McCoy & Bertranna Muruthi & Jamie Lynn Byram, 2021. "How Financial Socialization Messages Relate to Financial Management, Optimism and Stress: Variations by Race," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 237-250, June.
    15. Paraboni, Ana Luiza & da Costa, Newton, 2021. "Improving the level of financial literacy and the influence of the cognitive ability in this process," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    16. Sinha, Gaurav & Tan, Kevin & Zhan, Min, 2018. "Patterns of financial attributes and behaviors of emerging adults in the United States," Children and Youth Services Review, Elsevier, vol. 93(C), pages 178-185.
    17. Bannier, Christina E. & Schwarz, Milena, 2018. "Gender- and education-related effects of financial literacy and confidence on financial wealth," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 66-86.
    18. Adam Ndou, 2023. "Parental Financial Socialisation and Financial Knowledge: A Structural Equation Modelling Analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 16(1), pages 27-39, October.
    19. Xu, Lisa & Zia, Bilal, 2012. "Financial literacy around the world : an overview of the evidence with practical suggestions for the way forward," Policy Research Working Paper Series 6107, The World Bank.
    20. Hanson, Thomas A. & Olson, Peter M., 2018. "Financial literacy and family communication patterns," Journal of Behavioral and Experimental Finance, Elsevier, vol. 19(C), pages 64-71.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:46:y:2025:i:2:d:10.1007_s10834-024-09956-w. 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.