IDEAS home Printed from https://ideas.repec.org/a/bla/jconsa/v49y2015i3p550-575.html
   My bibliography  Save this article

An Empowerment Model of Youth Financial Behavior

Author

Listed:
  • Fernando Angulo-Ruiz
  • Albena Pergelova

Abstract

type="main" xml:id="joca12086-abs-0001"> The current study examines the antecedents of youth financial behavior. By grounding the conceptual framework on empowerment theory, we argue that in addition to financial knowledge other elements such as intrapersonal (e.g., locus of control and motivation) and interactional elements (e.g., parental financial teaching and behavior) also impact youth financial behavior. To test the hypotheses, structural equation modeling is used on a data set of youth from Western Canada. The results indicate that external locus of control has the highest total effect on youth financial behavior followed by parental influence and motivation. Findings are validated by performing several robustness checks and multigroup analysis. Organizations trying to influence youth financial behavior should broaden the understanding of empowerment to include personal worldview, motivation, as well as social surroundings.

Suggested Citation

  • Fernando Angulo-Ruiz & Albena Pergelova, 2015. "An Empowerment Model of Youth Financial Behavior," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(3), pages 550-575, November.
    • Handle: RePEc:bla:jconsa:v:49:y:2015:i:3:p:550-575
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/joca.12086
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Clinton Gudmunson & Sharon Danes, 2011. "Family Financial Socialization: Theory and Critical Review," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 644-667, December.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Cliff Robb, 2011. "Financial Knowledge and Credit Card Behavior of College Students," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 690-698, December.
    4. Jin Huang & Yunju Nam & Margaret S. Sherraden, 2013. "Financial Knowledge and Child Development Account Policy: A Test of Financial Capability," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(1), pages 1-26, April.
    5. John, Deborah Roedder, 1999. "Consumer Socialization of Children: A Retrospective Look at Twenty-Five Years of Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 26(3), pages 183-213, December.
    6. Jodi C. Letkiewicz & Jonathan J. Fox, 2014. "Conscientiousness, Financial Literacy, and Asset Accumulation of Young Adults," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(2), pages 274-300, June.
    7. Holbrook, Morris B & Hirschman, Elizabeth C, 1982. "The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 132-140, September.
    8. Soyeon Shim & Joyce Serido & Leslie Bosch & Chuanyi Tang, 2013. "Financial Identity-Processing Styles Among Young Adults: A Longitudinal Study of Socialization Factors and Consequences for Financial Capabilities," Journal of Consumer Affairs, Wiley Blackwell, vol. 47(1), pages 128-152, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John de New & David Ribar & Christopher Ryan & Clement Wong, 2020. "Financial Outcomes in Adolescence and Early Adulthood in Australian Longitudinal Data," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(1), pages 126-138, March.
    2. Carlsson Hauff, Jeanette & Hermansson, Cecilia, 2023. "“Buy him some Tesla stocks for his baptism”: Gender differences among young savers," Working Paper Series 23/12, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance, revised 19 Sep 2024.
    3. Lu Fan, 2021. "A Conceptual Framework of Financial Advice-Seeking and Short- and Long-Term Financial Behaviors: An Age Comparison," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 90-112, March.
    4. Hyesun Hwang & Hyung In Park, 2023. "The relationships of financial literacy with both financial behavior and financial well‐being: Meta‐analyses based on the selective literature review," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 222-244, January.
    5. Muñoz-Murillo, Melisa & Álvarez-Franco, Pilar B. & Restrepo-Tobón, Diego A., 2020. "The role of cognitive abilities on financial literacy: New experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
    6. Noh, Mijeong, 2022. "Effect of parental financial teaching on college students’ financial attitude and behavior: The mediating role of self-esteem," Journal of Business Research, Elsevier, vol. 143(C), pages 298-304.
    7. Yunju Nam & Margaret S. Sherraden & Eun Jeong Lee & Jin Huang, 2022. "Building financial capability among low‐income older Asian immigrants: The roles of financial access and locus of control," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(4), pages 1683-1704, December.
    8. Saeed Pahlevan Sharif & Ashraf Sadat Ahadzadeh & Jason James Turner, 2020. "Gender Differences in Financial Literacy and Financial Behaviour Among Young Adults: The Role of Parents and Information Seeking," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 672-690, December.
    9. Yuting Cui & Raphael Lissillour & Juraj Chebeň & Drahoslav Lančarič & Chunlin Duan, 2022. "The position of financial prudence, social influence, and environmental satisfaction in the sustainable consumption behavioural model: Cross‐market intergenerational investigation during the Covid‐19 ," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 996-1020, July.
    10. Terri Friedline & Stacia West, 2016. "Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 649-671, December.
    11. Shu Meng & Xin Gao & Lianfeng Duan, 2022. "Facing the COVID-19 Pandemic and Developing a Sustainable Entrepreneurial Ecosystem: The Theory and Practice of Innovation and Entrepreneurship Policies in China," IJERPH, MDPI, vol. 19(14), pages 1-20, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Suzanne Bartholomae & Jonathan J. Fox, 2021. "A Decade Review of Research on College Student Financial Behavior and Well-Being," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 154-177, July.
    2. Sinha, Gaurav & Tan, Kevin & Zhan, Min, 2018. "Patterns of financial attributes and behaviors of emerging adults in the United States," Children and Youth Services Review, Elsevier, vol. 93(C), pages 178-185.
    3. Bryce L. Jorgensen & Diane Foster & Jakob F. Jensen & Elisabete Vieira, 2017. "Financial Attitudes and Responsible Spending Behavior of Emerging Adults: Does Geographic Location Matter?," Journal of Family and Economic Issues, Springer, vol. 38(1), pages 70-83, March.
    4. Adam Hancock & Bryce Jorgensen & Melvin Swanson, 2013. "College Students and Credit Card Use: The Role of Parents, Work Experience, Financial Knowledge, and Credit Card Attitudes," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 369-381, December.
    5. Julie Birkenmaier & David Rothwell & Mary Agar, 2022. "How is Consumer Financial Capability Measured?," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 654-666, December.
    6. Valerija Botric & Tanja Broz, 2017. "Gender Differences in Financial Inclusion: Central and South Eastern Europe," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 15(2), pages 209-227.
    7. Tarnanidis, Theodore & Owusu-Frimpong, Nana & Nwankwo, Sonny & Omar, Maktoba, 2015. "Why we buy? Modeling consumer selection of referents," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 24-36.
    8. Gentjan Çera & Khurram Ajaz Khan & Jaroslav Belas & Humberto Nuno Rito Ribeiro, 2020. "The Role of Financial Capability and Culture in Financial Satisfaction," Economic Papers, The Economic Society of Australia, vol. 39(4), pages 389-406, December.
    9. Terri Friedline & Stacia West, 2016. "Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 649-671, December.
    10. Sicong Sun & Yu-Chih Chen & David Ansong & Jin Huang & Margaret S. Sherraden, 2022. "Household Financial Capability and Economic Hardship: An Empirical Examination of the Financial Capability Framework," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 716-729, December.
    11. Geert Van Campenhout, 2015. "Revaluing the Role of Parents as Financial Socialization Agents in Youth Financial Literacy Programs," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 186-222, March.
    12. Néstor Amadeo Bruno Pérez & Sandra Morini Marrero, 2021. "Selección mediante LASSO adaptado para determinar las variables importantes de los videos en las campañas de crowdfunding españolas," Revista de Análisis Económico y Financiero, Universidad de San Martín de Porres, vol. 4(02), pages 13-27.
    13. Ali Saleh Alshebami & Theyazn H. H. Aldhyani, 2022. "The Interplay of Social Influence, Financial Literacy, and Saving Behaviour among Saudi Youth and the Moderating Effect of Self-Control," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    14. Nguyen, Stephanie & Nicod, Lionel & Llosa, Sylvie, 2024. "Preventing bypass on sharing economy platforms: The impact of message framing on users’ bypass intention," Journal of Business Research, Elsevier, vol. 179(C).
    15. Kenneth J. White & Kim Love & Megan McCoy & Miranda Reiter & Desiree M. Seponski & Janet Koposko & Erica Regan, 2022. "Factors associated with the financial strain of transgender and gender diverse college students," Journal of Consumer Affairs, Wiley Blackwell, vol. 56(4), pages 1617-1637, December.
    16. Tomasz Potocki & Sylwester Białowąs, 2023. "What Factors Predict a Positive Change in a Consumer’s Financial Capability over Time? The New Evidence from Poland," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 634-654, September.
    17. Man Yao & Tori I. Rehr & Erica P. Regan, 2023. "Gender Differences in Financial Knowledge among College Students: Evidence from a Recent Multi-institutional Survey," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 693-713, September.
    18. Erasmus, Alet C. & Donoghue, Suné & Dobbelstein, Thomas, 2014. "Consumers׳ perception of the complexity of selected household purchase decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 293-305.
    19. Silva, Wesley Mendes da & Onusic, Luciana Massaro & Norvilitis, Jill M. & Moura, Gilnei L., 2013. "Ilusão de foco e satisfação com a vida entre universitários em São Paulo e Santa Maria," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 53(5), September.
    20. Zhu, Alex Yue Feng, 2019. "School financial education and parental financial socialization: Findings from a sample of Hong Kong adolescents," Children and Youth Services Review, Elsevier, vol. 107(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jconsa:v:49:y:2015:i:3:p:550-575. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-0078 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.