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Patterns of financial attributes and behaviors of emerging adults in the United States

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  • Sinha, Gaurav
  • Tan, Kevin
  • Zhan, Min

Abstract

The growing socioeconomic and market complexities require all young adults to make sound financial decisions, yet a large number of them lack the necessary skills and knowledge. Literature on identifying the latent financial characteristics of American emerging adults are sparse. Based on the 2015 National Financial Capability Study, the present research explores heterogeneous patterns in financial attributes and behaviors of emerging adults (N = 3050, 18–24 years). Results indicate four different classes. More than half of the emerging adults were found to be financially precarious (32%) or financially at-risk (36%) who scored low on several financial attributes and behaviors. Financially striving (10%) and financially stable (22%) scored moderate to high on these indicators. Findings suggest that a deeper understanding of patterns of financial behaviors and attributes of emerging adults can help in designing appropriate need-based programs and increasing their program participation. Understanding this diversity in financial capabilities of emerging adults has implications for their economic wellbeing and financial socialization of their eventual children. Findings have implications for policymakers, practitioners, and socialization agencies, including families and parents.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:cysrev:v:93:y:2018:i:c:p:178-185
    DOI: 10.1016/j.childyouth.2018.07.023
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    3. Ma. Jesusa Corazon M Lambert & Zuroni Md Jusoh & Husniyah Abd Rahim & Norzalina Zainudin, 2023. "Factors Affecting Financial Well-being of Millennials: A Systematic Review," Information Management and Business Review, AMH International, vol. 15(2), pages 98-108.
    4. Travis P. Mountain & Namhoon Kim & Joyce Serido & Soyeon Shim, 2021. "Does Type of Financial Learning Matter for Young Adults’ Objective Financial Knowledge and Financial Behaviors? A Longitudinal and Mediation Analysis," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 113-132, March.
    5. Sophie Baudat & Caroline Henchoz, 2023. "Money in one click: Inequalities in digital financial practices and digital Skills among emerging adults in Switzerland," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 602-618, September.
    6. Jin Huang & Margaret S. Sherraden & Michael Sherraden & Lissa Johnson, 2022. "Experimental Effects of Child Development Accounts on Financial Capability of Young Mothers," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 36-50, March.
    7. Adam Ndou, 2023. "The Impact of Parental Financial Socialisation on Financial Decision-Making of Young Black African Adults in Rural and Low-Income Area in South Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 84-91, July.
    8. Khanh Duy Pham & Vu Linh Toan Le, 2023. "Nexus between Financial Education, Literacy, and Financial Behavior: Insights from Vietnamese Young Generations," Sustainability, MDPI, vol. 15(20), pages 1-21, October.
    9. Zhu, Alex Yue Feng, 2024. "Optimizing financial decision-making for emerging adults: A compact Python-based personalized financial projection approach," Technology in Society, Elsevier, vol. 77(C).

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