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Are You Close with Your Parents? The Mediation Effects of Parent–Child Closeness on Young Adults’ Financial Socialization Through Young Adults’ Self-reported Responsibility

Author

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  • Ji Hyun Kim

    (Korean Institute of Child Care and Education)

  • Julia Torquati

    (University of Neraska-Lincoln)

Abstract

This study investigated the relationship between young adults’ closeness with their parents, their self-reported money management behaviors, and worry about money as mediated through young adults’ self-reported responsibility. The sample of 1632 young adults aged from 18 to 27, was obtained from the Panel Study of Income Dynamics—Transition into Adulthood Supplement (2015), and was 48.0% male and 49.8% white. A path analysis tested the conceptual model based on the family financial socialization theory (FFST) (Gudmunson and Danes, Journal of Family and Economic Issues 32:644–667, 2011). The results demonstrate that closeness with both fathers and mothers was positively associated with financial behaviors mediated through young adults’ self-reported responsibility after controlling for age, parents’ education and financial assistance from the family. However, only closeness with father had a direct association with positive self-reported money management behaviors and an indirect association with worry about money. Young adults’ self-reported responsibility, in terms of their financial capabilities, resulted in an indirect effect on worry about money through self-reported money management behaviors. We discuss the meaning of the effects of closeness with parents as a domain-general factor on financial outcomes.

Suggested Citation

  • Ji Hyun Kim & Julia Torquati, 2021. "Are You Close with Your Parents? The Mediation Effects of Parent–Child Closeness on Young Adults’ Financial Socialization Through Young Adults’ Self-reported Responsibility," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 314-324, June.
    • Handle: RePEc:kap:jfamec:v:42:y:2021:i:2:d:10.1007_s10834-020-09725-5
    DOI: 10.1007/s10834-020-09725-5
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    References listed on IDEAS

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    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.
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