The Effect of Socialization and Information Source on Financial Management Behaviors among Low‐ and Moderate‐Income Adults

Abstract

Previous studies on financial socialization have focused on adolescents or college students. This study examined the effect of financial socialization on the financial behaviors of adults aged 24–66 from low‐ and moderate‐income households. Data from the NC‐1172 Complex Nature of Saving data set were analyzed using ordinary least squares regressions and logistic regressions. The four dependent variables were spending less than income, making financial plans, monitoring spending, and having savings goals. Among other results, the regression analyses showed that (i) discussions about money with parents as a child and (ii) learning from financial planners significantly influenced adults’ financial management behavior. The findings suggest that financial socialization has a significant effect beyond adolescent or college years.