Comparing Financial Socialization and Formal Financial Education: Building Financial Capability

Minchao Jin and Zibei Chen ()
Additional contact information
Minchao Jin: New York University
Zibei Chen: University of Michigan

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2020, vol. 149, issue 2, No 11, 656 pages

Abstract: Abstract Many individuals learn financial knowledge and skills in school (namely formal financial education) and through friends and family (e.g., family financial socialization). While the two channels have distinctive merits and limitations, little is known about how formal financial education and family financial socialization differ and interact when it comes to helping people gain financial knowledge and skills. Using data from the 2015 National Financial Capability Study, we examined the association between formal financial education, family financial socialization, and financial knowledge. Results from regression estimates with interaction terms included indicated that both channels had positive associations with increased financial knowledge levels with different impact magnitudes, while together they seemed to have negative associations with increased financial knowledge. Our study suggests that each channel likely provides financial knowledge in different domains and has implications for future research and financial education policy.

Keywords: Financial socialization; Financial education; Financial knowledge; Interaction; Financial capability (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://link.springer.com/10.1007/s11205-019-02248-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:soinre:v:149:y:2020:i:2:d:10.1007_s11205-019-02248-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11205-019-02248-z

Access Statistics for this article

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement is currently edited by Filomena Maggino

More articles in Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().