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Adolescent Financial Literacy: Viewing Peers as Good Financial Role Models

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Abstract

This study aims to develop a peer financial modelling scale to ascertain any correlations between the role modelling of peers and the financial literacy of adolescents. The theoretical foundation for this aim lies in Social Learning Theory. The study also examines the reliability of the recently developed short and minimal versions of the Parent Financial Socialisation Scale. Using a survey administered through Qualtrics, data were collected from a sample of 382 fifteen to nineteen-year-olds. Confirmatory factor analysis was used to measure model fit of any proposed scale, with Cronbach’s alpha calculated to test for internal consistency reliability. An ordinary least squares regression was then run to assess any correlation between the scale developed and financial literacy, incorporating control variables for gender and socioeconomic status. A Peer Financial Modelling Scale is developed and found to be negatively correlated with financial literacy levels. Adolescents with lower financial literacy are more likely to view their peers as good financial role models. All three versions of the Parent Financial Socialisation Scale were found to be positively correlated with financial literacy knowledge.

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  • Steve Agnew & Patrick Roger & Tristan Roger, 2024. "Adolescent Financial Literacy: Viewing Peers as Good Financial Role Models," Working Papers in Economics 24/14, University of Canterbury, Department of Economics and Finance.
    • Handle: RePEc:cbt:econwp:24/14
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    File URL: https://repec.canterbury.ac.nz/cbt/econwp/2414.pdf
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    More about this item

    Keywords

    Adolescent financial literacy; Peer financial modelling; Social learning theory; Financial socialization; Financial education;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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