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Parental Financial Socialisation And Socioeconomic Status

Author

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  • NDOU, Adam

    (Department of Finance, Risk Management and Banking. University of South Africa, Pretoria, South Africa.)

Abstract

Parental socioeconomic status (SES) is increasingly become important in parental financial socialisation. The main purpose of this study is to determine the difference in parental financial socialisation across parental SES. Parental financial socialisation is measured through parental financial teaching, while parental SES is measured through parental income levels and education levels. Two hypotheses are formulated and tested, H1 states that there is a significant difference in parental financial teaching across parental income levels. H2 states that there is a significant difference in parental financial teaching across parental levels of education. Descriptive statistics Levene’s test, Welch robust test, Tukey HSD test and ANOVA are used to analysed data. The results showed that there is a significant difference in parental financial teaching across parental income levels. The results further showed that there is a significant difference in parental financial teaching across parental levels of education. Thus, the overall results indicated that there is a significant difference in parental financial socialisation across parental SES. The study concludes by suggesting interventions that could help parents, government, financial institutions, and other stakeholders to deal with parental SES to improve on parental financial socialisation, which will in turn have an impact on financial literacy and financial well-being of young adults.

Suggested Citation

  • NDOU, Adam, 2023. "Parental Financial Socialisation And Socioeconomic Status," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 27(1), pages 39-58, March.
    • Handle: RePEc:vls:finstu:v:27:y:2023:i:1:p:39-58
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    References listed on IDEAS

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    More about this item

    Keywords

    education level; income level; financial teaching;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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