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An Empowerment Model of Youth Financial Behavior

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  • 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
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    File URL: http://hdl.handle.net/10.1111/joca.12086
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    References listed on IDEAS

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    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. 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.
    5. 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.
    6. 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).
    7. 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.
    8. 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.
    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.
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