How Financial Socialization Messages Relate to Financial Management, Optimism and Stress: Variations by Race

This study explored how explicit family financial socialization as reflected in three types of parental financial messages (messaging about saving, banking, and investing) relate to three financial outcomes (financial management, financial stress, and financial optimism) and how these relationships...

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Bibliographic Details
Published inJournal of family and economic issues Vol. 42; no. 2; pp. 237 - 250
Main Authors White, Kenneth, Watkins, Kimberly, McCoy, Megan, Muruthi, Bertranna, Byram, Jamie Lynn
Format Journal Article
LanguageEnglish
Published New York Springer US 01.06.2021
Springer Nature B.V
Subjects
African Americans
Banking
College students
Economic stress
Ethnic groups
Ethnicity
Families & family life
Family
Family of origin
Financial management
Management
Minority & ethnic groups
Optimism
Original Paper
Personality and Social Psychology
Race
Race relations
Social Policy
Social Sciences
Socialization
Sociology
Stress
Student attitudes
Students
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Summary:This study explored how explicit family financial socialization as reflected in three types of parental financial messages (messaging about saving, banking, and investing) relate to three financial outcomes (financial management, financial stress, and financial optimism) and how these relationships varied by race. We used cross-sectional data from 14,662 respondents from the 2014 National Student Financial Wellness Survey (NSFWS), a nationally representative dataset inclusive of students from 52 colleges and universities across the United States. Results from this study offer an understanding of how specific financial messages regarding saving, banking, and investing shape college students’ financial management behaviors and attitudes and how race/ethnicity is associated with the specific types of messaging in one’s family of origin. Specifically, results demonstrated that African American students received significantly fewer saving and banking messages and Hispanic students received fewer investing messages compared to other racial/ethnic groups. Across all racial categories, those who received the investing message reported better financial management, higher financial optimism, and experienced less financial stress.
ISSN:1058-0476
1573-3475
DOI:10.1007/s10834-020-09704-w