Financial Socialization

  • Clinton G. GudmunsonEmail author
  • Sara K. Ray
  • Jing Jian Xiao


Social processes play a major role in developing children into capable producers, consumers, and agents of financial socialization in adulthood. The latest research continues to demonstrate that parents exert more influence than educators, peers, media, and self-learning in promoting good financial behavior and experiencing financial wellbeing, although all these factors play a role in financial socialization. Research has also progressed in elucidating the mechanisms of social interaction and the psychosocial characteristics of individuals that pair with financial literacy to achieve desirable financial outcomes. Longer periods of financial interdependence are realities for many families living in fluctuating economies that require ever greater investments in education, often accompanied by student loan debt, to achieve long-term financial success. Thus, it is important that future financial socialization research considers longitudinal processes that span adolescence, early adulthood, and the midlife, while better attending to economic realities of time and place. Theoretical foundations of financial socialization have continued to take shape and can benefit from further development and use as the basis for empirical work.


Consumer socialization Economic socialization Family Financial capability Financial socialization 


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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  • Clinton G. Gudmunson
    • 1
    Email author
  • Sara K. Ray
    • 2
  • Jing Jian Xiao
    • 3
  1. 1.Department of Human Development and Family StudiesIowa State UniversityAmesUSA
  2. 2.Department of Human Development and Family StudiesIowa State UniversityAmesUSA
  3. 3.Department of Human Development and Family StudiesUniversity of Rhode Island, Transition CenterKingstonUSA

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