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

Ji Hyun Kim, Julia Torquati

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)314-324
Number of pages11
JournalJournal of Family and Economic Issues
Volume42
Issue number2
DOIs
StatePublished - Jun 2021
Externally publishedYes

Keywords

  • Closeness with parents
  • Domain-general socialization
  • Financial socialization
  • Young adults
  • Young adults’ responsibility

ASJC Scopus subject areas

  • Social Psychology
  • Economics and Econometrics

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