Young Adults’ Life Outcomes and Well-Being: Perceived Financial Socialization from Parents, the Romantic Partner, and Young Adults’ Own Financial Behaviors
We examined how perceived financial socialization—from parents, the romantic partner, and young adults’ own behavior—was associated with young adults’ life outcomes and well-being (i.e., physical and mental health, finances, romantic relationship). Using data (N = 504) from young adults specific to their finances, results from hierarchical regression analyses showed that young adults’ own financial behaviors were the most patterned, followed by financial socialization from the romantic partner, and then from financial socialization from parents (only objective financial knowledge). We discuss how young adults’ financial behavior, financial socialization from the romantic partner and, to a lesser extent, parental socialization are associated with young adults’ life domains, underscoring the developmental salience of increased financial capability and relationship formation and decreased dependence on parents during the transition to adulthood.
KeywordsFinancial socialization Parenting young adults Transition to adulthood Young adult financial behavior Young adult romantic partner
This study was funded by the National Endowment of Financial Education and the Take Charge of America Institute at the University of Arizona.
Compliance with Ethical Standards
Conflict of interest
The authors declare that they have no conflict of interest.
All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.
Informed consent was obtained from all individual participants included in the study.
- Adkins, A., & Rigoni, B. (2016). Paycheck or purpose: What drives millennials? Gallup Business Journal. Retrieved from http://news.gallup.com/businessjournal/191906/paycheck-purpose-drives-millennials.aspx.
- Arnett, J. J. (2011). Emerging adulthood: The cultural psychology of a new life stage. In L. A. Jensen (Ed.), Bridging cultural and developmental psychology: New syntheses in theory, research, and policy (pp. 255–275). New York: Oxford University Press.Google Scholar
- Cho, S. H., Gutter, M., Kim, J., & Mauldin, T. (2012). The effect of socialization and information source on financial management behaviors among low- and moderate-income adults. Family and Consumer Sciences Research Journal, 40(4), 417–430. https://doi.org/10.1111/j.1552-3934.2012.02120.x.CrossRefGoogle Scholar
- Danes, S. M. (1994). Parental perceptions of children’s financial socialization. Journal of Financial Counseling and Planning, 5, 127–146.Google Scholar
- Erikson, E. H. (1950). Childhood and society. New York: W. W. Norton.Google Scholar
- Erikson, E. H. (1968). Identity: Youth and crisis. New York: W. W. Norton.Google Scholar
- Grinstein-Weiss, M., Spader, J., Yeo, Y. H., Taylor, A., & Freeze, B., E (2011). Parental transfer of financial knowledge and later credit outcomes among low- and moderate-income homeowners. Children and Youth Services Review, 33(1), 78–85. https://doi.org/10.1016/j.childyouth.2010.08.015.CrossRefGoogle Scholar
- Hilgert, M. A., Hogarth, J. M., & Beverly, S. G. (2003). Household financial management: The connection between knowledge and behavior. Federal Reserve Bulletin, 89, 309–322.Google Scholar
- Kim, J., & Chatterjee, S. (2013). Childhood financial socialization and young adult’s financial management. Journal of Financial Counseling and Planning, 24(1), 61–92.Google Scholar
- LeBaron, A. B., Allsop, D. B., Hill, E. J., Willoughby, B. J., & Britt-Lutter, S. L. (in press). Materialism and marriage: Actor and partner effects between materialism, importance of marriage, and marital satisfaction. Journal of Financial Therapy.Google Scholar
- Lyons, A. C. (2004). A profile of financially at-risk college students. The Journal of Consumer Affairs, 38, 56–80. https://doi.org/10.1111/j.1745-6606.2004.tb00465.x.CrossRefGoogle Scholar
- Mimura, Y., Koonce, J., Plunkett, S. W., & Pleskus, L. (2015). Financial information source, knowledge, and practices of college students from diverse backgrounds. Journal of Financial Counseling and Planning, 26, 63–78.Google Scholar
- Moschis, G. P. (1987). Consumer socialization: A life-cycle perspective. Massachusetts: Lexington Books.Google Scholar
- Otto, A., & Serido, J. (2017). Economic socialization: Childhood, adolescence and early adulthood. In R. Ranyard (Ed.), Economic psychology (pp. 322–336). Chichester: Wiley.Google Scholar
- Petrocelli, J. V. (2003). Hierarchical multiple regression in counseling research: Common problems and possible remedies. Measurement and Evaluation in Counseling and Development, 36, 9–22.Google Scholar
- Saad, L. (2015). Fewer young people say I do—to any relationship. Gallup. Retrieved from http://www.gallup.com/poll/183515/fewer-young-people-say-relationship.aspx?g_source=married&g_medium=search&g_campaign=tiles.
- Settersten, R. A. Jr. (2012). The contemporary context of young adulthood in the USA: From demography to development, from private troubles to public issues. In A. Booth, S. L. Brown, N. S. Landale, W. D. Manning & S. M. McHale (Eds.), Early adulthood in a family context (pp. 3–26). New York, NY: Springer. https://doi.org/10.1007/978-1-4614-1436-0_1.CrossRefGoogle Scholar
- Shim, S., Serido, J., & Xiao, J. J. (2009). Arizona pathways to life success for university students (APLUS): Cultivating positive financial attitudes and behaviors for healthy adulthood. Tucson, AZ: University of Arizona.Google Scholar
- Stein, C. H., Hoffmann, E., Bonar, E. E., Leith, J. E., Abraham, K. M., Hamill, A. C., … Fogo, W. R. (2013). The United States economic crisis: Young adults’ reports of economic pressures, financial and religious coping and psychological well-being. Journal of Family and Economic Issues, 34(2), 200–210. https://doi.org/10.1007/s10834-012-9328-x.CrossRefGoogle Scholar
- Wightman, P., & Schoeni, R. (2012). Familial financial assistance to young adults. (National Poverty Center Working Paper #12–10). Retrieved from http://npc.umich.edu/publications/u/2012-10%20NPC%20Working%20Paper.pdf.
- Zimmerman, K. J., & Roberts, C. W. (2012). The influence of a financial management course on couples’ relationship quality. Journal of Financial Counseling and Planning, 23(2), 46–54.Google Scholar