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The Effect of Socialization and Information Source on Financial Management Behaviors among Low‐ and Moderate‐Income Adults
Author(s) -
Cho Soo Hyun,
Gutter Michael,
Kim Jinhee,
Mauldin Teresa
Publication year - 2012
Publication title -
family and consumer sciences research journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.372
H-Index - 31
eISSN - 1552-3934
pISSN - 1077-727X
DOI - 10.1111/j.1552-3934.2012.02120.x
Subject(s) - socialization , logistic regression , low income , financial management , financial literacy , finance , ordinary least squares , psychology , demographic economics , survey data collection , money management , economics , social psychology , medicine , econometrics , statistics , mathematics
Previous studies on financial socialization have focused on adolescents or college students. This study examined the effect of financial socialization on the financial behaviors of adults aged 24–66 from low‐ and moderate‐income households. Data from the NC‐1172 Complex Nature of Saving data set were analyzed using ordinary least squares regressions and logistic regressions. The four dependent variables were spending less than income, making financial plans, monitoring spending, and having savings goals. Among other results, the regression analyses showed that (i) discussions about money with parents as a child and (ii) learning from financial planners significantly influenced adults’ financial management behavior. The findings suggest that financial socialization has a significant effect beyond adolescent or college years.