Abstract
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.
Similar content being viewed by others
References
Addo, F. R., & Sassler, S. (2010). Financial arrangements and relationship quality in low-income couples. Family Relations, 59, 408–423. https://doi.org/10.1111/j.1741-3729.2010.00612.x.
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.
Adler, N. E., & Stewart, J. (2010). Health disparities across the lifespan: Meaning, methods, and mechanisms. Annals of the New York Academy of Sciences, 1186, 5–23. https://doi.org/10.1111/j.1749-6632.2009.05337.x.
Archuleta, K. L., Britt, S. L., Tonn, T. J., & Grable, J. E. (2011). Financial satisfaction and financial stressors in marital satisfaction. Psychological Reports, 108(2), 563–576. https://doi.org/10.2466/07.21.PR0.108.2.563-576.
Arnett, J. J. (2000). Emerging adulthood: A theory of development from the late teens through the twenties. American Psychologist, 55, 469–480. https://doi.org/10.1037/0003-066x.55.5.469.
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.
Bandura, A. (2001). Social cognitive theory: An agentic perspective. Annual Review of Psychology, 52, 1–26.
Bozick, R., & Estacion, A. (2014). Do student loans delay marriage? Debt repayment and family formation in young adulthood. Demographic Research, 30, 1865–1891. https://doi.org/10.4054/DemRes.2014.30.69.
Britt, S. L. (2016). The intergenerational transference of money attitudes and behaviors. Journal of Consumer Affairs, 50(3), 539–556. https://doi.org/10.1111/joca.12113.
Britt, S. L., & Huston, S. J. (2012). The role of money arguments in marriage. Journal of Family and Economic Issues, 33(4), 464–476. https://doi.org/10.1007/s10834-012-9304-5.
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.
Danes, S. M. (1994). Parental perceptions of children’s financial socialization. Journal of Financial Counseling and Planning, 5, 127–146.
Dew, J. (2007). Two sides of the same coin? The differing roles of assets and consumer debt in marriage. Journal of Family and Economic Issues, 28, 89–104. https://doi.org/10.1007/s10834-006-9051-6.
Dew, J. (2008). Debt change and marital satisfaction change in recently married couples. Family Relations, 57, 60–71. https://doi.org/10.1111/j.1741-3729.2007.00483.x.
Dew, J. (2011). Financial issues and relationship outcomes among cohabiting individuals. Family Relations, 60, 178–190. https://doi.org/10.1111/j.1741-3729.2010.00641.x.
Dew, J., Britt, S., & Huston, S. (2012). Examining the relationship between financial issues and divorce. Family Relations, 61, 615–628. https://doi.org/10.1111/j.1741-3729.2012.00715.x.
Dew, J. P., & Stewart, R. (2012). A financial issue, a relationship issue, or both? Examining the predictors of marital financial conflict. Journal of Financial Therapy, 3(1). https://doi.org/10.4148/jft.v3i1.1605.
Diener, E., Emmons, R. A., Larsen, R. J., & Griffin, S. (1985). The satisfaction with life scale. Journal of Personality Assessment, 49, 71–75. https://doi.org/10.1207/s15327752jpa4901_13.
Erikson, E. H. (1950). Childhood and society. New York: W. W. Norton.
Erikson, E. H. (1968). Identity: Youth and crisis. New York: W. W. Norton.
Fingerman, K. L., Kim, K., Davis, E. M., Furstenberg, F. F., Jr., Birditt, K. S., & Zarit, S. (2015). “I’ll give you the world”: Socioeconomic differences in parental support of adult children. Journal of Marriage and Family, 77, 844–865. https://doi.org/10.1111/jomf.12204.
Furstenberg, F. (2014). Fifty years of family change: From consensus to complexity. Annals of the American Academy of Political and Social Science, 654, 12–30. https://doi.org/10.1177/0002716214524521.
Furstenberg, F. F. (2010). On a new schedule: Transition to adulthood and family change. The Future of Children, 20(1), 67–87. https://doi.org/10.1353/foc.0.0038.
Gibson-Davis, C. M. (2009). Money, marriage, and children: Testing the financial expectations and family formation theory. Journal of Marriage and Family, 71(1), 146–160. https://doi.org/10.1111/j.1741-3737.2008.00586.x.
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.
Gudmunson, C. G., & Danes, S. M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32(4), 644–667. https://doi.org/10.1007/s10834-011-9275-y.
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.
Jorgensen, B. L., & Savla, J. (2010). Financial literacy of young adults: The importance of parental socialization. Family Relations, 59, 465–478. https://doi.org/10.1111/j.l741-3729.2010.00616.x.
Kim, J., & Chatterjee, S. (2013). Childhood financial socialization and young adult’s financial management. Journal of Financial Counseling and Planning, 24(1), 61–92.
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.
LeBaron, A. B., Kelley, H. H., & Carroll, J. S. (2018). Money over marriage: Marriage importance as a mediator between materialism and marital satisfaction. Journal of Family and Economic Issues. https://doi.org/10.1007/s10834-017-9563-2. (Online first)
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.
Marshall, H., & Magruder, L. (1960). Relations between parent money education practices and children’s knowledge and use of money. Child Development, 31, 253–284. https://doi.org/10.2307/1125902.
Mayseless, O., & Keren, E. (2014). Finding a meaningful life as a developmental task in emerging adulthood: The domains of love and work across cultures. Emerging Adulthood, 2, 63–76. https://doi.org/10.1177/2167696813515446.
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.
Moschis, G. P. (1985). The role of family communication in consumer socialization of children and adolescents. Journal of Consumer Research, 11(4), 898–913.
Moschis, G. P. (1987). Consumer socialization: A life-cycle perspective. Massachusetts: Lexington Books.
Oppenheimer, V. K. (1988). A theory of marriage timing. The American Journal of Sociology, 94, 563–591.
Otto, A., & Serido, J. (2017). Economic socialization: Childhood, adolescence and early adulthood. In R. Ranyard (Ed.), Economic psychology (pp. 322–336). Chichester: Wiley.
Papp, L. M., Cummings, E. M., & Goeke-Morey, M. C. (2009). For richer, for poorer: Money as a topic of marital conflict in the home. Family Relations, 58, 91–103. https://doi.org/10.1111/j.1741-3729.2008.00537.x.
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.
Ross, D. B., O’Neal, C. W., Arnold, A. L., & Mancini, J. (2017). Money matters in marriage: Financial concerns, warmth, and hostility among military couples. Journal of Family and Economic Issues, 38, 572–581. https://doi.org/10.1007/s10834-017-9522-y.
Rusbult, C. E., Martz, J. M., & Agnew, C. R. (1998). The investment model scale: Measuring commitment level, satisfaction level, quality of alternatives, and investment size. Personal Relationships, 5, 357–391.
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.
Schumm, W. R., Nichols, C. W., Schectman, K. L., & Grinsby, C. C. (1983). Characteristics of responses to the Kansas Marital Satisfaction Scale by a sample of 84 married mothers. Psychological Reports, 53, 567–572.
Serido, J., Curran, M., Wilmarth, M., Ahn, S., Shim, S., & Ballard, J. (2015). The unique role of parents and romantic partners on young adults’ financial attitudes and behaviors. Family Relations, 64, 696–710. https://doi.org/10.1111/fare.12164.
Serido, J., Shim, S., Mishra, A., & Tang, C. (2010). Financial parenting, financial coping behaviors and well-being of emerging adults. Family Relations, 59, 453–464. https://doi.org/10.1111/j.1741-3729.2010.00615.x.
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37, 287–297. https://doi.org/10.1177/0165025413479476.
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.
Shim, S., Barber, B. L., Card, N. A., Xiao, J. J., & Serido, J. (2010). Financial socialization of first-year college students: The roles of parents, work, and education. Journal of Youth and Adolescence, 39, 1457–1470. https://doi.org/10.1007/s10964-009-9432-x.
Shim, S., Serido, J., & Tang, C. (2012). The ant and the grasshopper revisited: The present psychological benefits of saving for tomorrow. Journal of Economic Psychology, 33(1), 155–165. https://doi.org/10.1016/j.joep.2011.08.005.
Shim, S., Serido, J., Tang, C., & Card, N. (2015). Socialization processes and pathways to healthy financial development for emerging young adults. Journal of Applied Developmental Psychology, 38, 29–38. https://doi.org/10.1016/j.appdev.2015.01.002.
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.
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.
Watson, S. J., & Barber, B. L. (2016). University attendance moderates the link between financial norms and healthy financial behavior for Australian young adults. Journal of Family and Economic Issues, 38, 238–248. https://doi.org/10.1007/s10834-016-9505-4.
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.
Xiao, J. J., Chatterjee, S., & Kim, J. (2014). Factors associated with financial independence of young adults. International Journal of Consumer Studies, 38(4), 394–403. https://doi.org/10.1111/ijcs.12106.
Xiao, J. J., Sorhaindo, B., & Garman, E. T. (2006). Financial behavior of consumers in credit counseling. International Journal of Consumer Studies, 30(2), 108–121. https://doi.org/10.1111/j.1470-6431.2005.00455.x.
Xiao, J. J., Tang, C., & Shim, S. (2009). Acting for happiness: Financial behavior and life satisfaction of college students. Social Indicators Research, 92(1), 53–68. https://doi.org/10.1007/s11205-008-9288-6.
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.
Funding
This study was funded by the National Endowment of Financial Education and the Take Charge of America Institute at the University of Arizona.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors declare that they have no conflict of interest.
Ethical Approval
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
Informed consent was obtained from all individual participants included in the study.
Rights and permissions
About this article
Cite this article
Curran, M.A., Parrott, E., Ahn, S.Y. et al. Young Adults’ Life Outcomes and Well-Being: Perceived Financial Socialization from Parents, the Romantic Partner, and Young Adults’ Own Financial Behaviors. J Fam Econ Iss 39, 445–456 (2018). https://doi.org/10.1007/s10834-018-9572-9
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10834-018-9572-9