Family Financial Socialisation and its Impact on Financial Confidence, Intentions, and Behaviours among New Zealand Adolescents

Steve Agnew () and Valerie A. Sotardi
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Steve Agnew: University of Canterbury, https://www.canterbury.ac.nz

Working Papers in Economics from University of Canterbury, Department of Economics and Finance

Abstract: This study investigated the impact of family financial socialisation on the financial perceptions and behaviours of adolescents. Drawing from social learning theory, Gudmunson and Danes’ model of family financial socialisation, and the theory of planned behaviour, we examined the influence of family affluence, financial anxiety, and values on adolescents’ financial confidence, intentions, and behaviours. The research also explores gender differences and the distinct effects of family socialisation in banking and budgeting contexts. With a large sample of adolescents in New Zealand (n = 5,370), results using structural equation modelling reveal that family affluence corresponds with a higher perception of family financial anxiety and a stronger emphasis on financial values on savings. We highlight the significant role of family financial values in shaping adolescents’ general confidence in money management, which influences their confidence in specific financial domains. Our results also highlight a gap between confidence and action in financial behaviours, with gender differences impacting this dynamic. The findings offer insights for parents, policymakers, and financial institutions, emphasising the importance of family financial socialisation in fostering responsible financial practices among young people.

Keywords: family socialisation; financial socialisation; adolescents; affluence; confidence (search for similar items in EconPapers)
JEL-codes: D14 D91 J16 Z13 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2024-04-01
New Economics Papers: this item is included in nep-fle
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Persistent link: https://EconPapers.repec.org/RePEc:cbt:econwp:24/05

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