Talk is (still) cheap: A multi-informant analysis of parent financial socialization during adolescence

Abstract

Grounded in family financial socialization theory, the purpose of this study was to better understand parent financial socialization processes and outcomes by including multiple perspectives and by studying these processes and outcomes during adolescence (vs. retrospectively during emerging adulthood). We utilized reports from 1,117 U.S. adolescents and their primary caregiver (1,117; total N = 2,234). Through structural equation modeling, we tested the family financial socialization model, with adolescent and parent reports of socialization processes simultaneously considered to determine their relative predictive power on adolescents’ financial outcomes. Our findings in some ways supported Gudmunson and Danes’ model and aligned with previous research and in some ways contrasted with the model and previous research, highlighting the importance of using multi-informant data to study financial socialization and the importance of studying financial socialization during adolescence. Insights from this study can aid educators and practitioners in improving parent financial socialization and, ultimately, enhancing financial behaviors and financial wellbeing.

Keywords

Family Financial socialization structural equation modeling multi-informant adolescents discussion modeling experiential learning financial self-efficacy financial behaviors financial stress

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