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The Relationship between Culture and Parental Financial Socialization

Author

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  • Adam Ndou

    (University of South Africa (RSA), South Africa)

Abstract

Culture has become an important aspect of parental financial socialization in rural and low-income areas across the world, and there is an increasing need for these studies in this field. This study heeds this call and investigates the relationship between culture and parental financial socialization in rural and low-income areas in South Africa. Parental financial socialization is measured through parental financial behavior, parental financial monitoring, parental financial discussion, parental financial communication, and parental financial teaching. A quantitative research approach is adopted in this study. A self-administered questionnaire is used to collect data in Fetakgomo Tubatse and Intsika Yethu municipalities, as they are the most rural and low-income areas in South Africa. Correlation analysis is used to analyze data. The results show a negative relationship between Culture and Parental financial socialization. Thus, parents who uphold cultural values are less likely to engage in parental financial socialization. Based on the results, this study provides important recommendations to parents, financial educators, and the government to improve parental financial socialization. This study also offers suggestions for future studies in the field of culture and parental financial socialization.

Suggested Citation

  • Adam Ndou, 2023. "The Relationship between Culture and Parental Financial Socialization," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 11(1), pages 41-51.
    • Handle: RePEc:ejn:ejefjr:v:11:y:2023:i:1:p:41-51
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    References listed on IDEAS

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    1. Ji Hyun Kim & Julia Torquati, 2019. "Financial Socialization of College Students: Domain-General and Domain-Specific Perspectives," Journal of Family and Economic Issues, Springer, vol. 40(2), pages 226-236, June.
    2. Brown, Martin & Henchoz, Caroline & Spycher, Thomas, 2018. "Culture and financial literacy: Evidence from a within-country language border," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 62-85.
    3. Jinhee Kim & Jaslean LaTaillade & Haejeong Kim, 2011. "Family Processes and Adolescents’ Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 668-679, December.
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