The Financial Behavior of Emerging Adults : A Family Financial Socialization Approach

The present study examined the role of attachment insecurity, locus of control, and parental financial communication in the financial behavior of emerging adults from a family financial socialization theory perspective. The sample consisted of 348 emerging adult college students (226 female) from a large southeastern university. Structural equation modeling was utilized to examine the direct and indirect effects as well as the overall fit of the model that was constructed according to family financial socialization theory. Results indicated a mediated relationship between attachment insecurity and financial behavior with significant indirect effects ([beta]= -.717, p<.001). Direct effects of attachment insecurity on the mediating variables, locus of control ([beta]= -.956, p<.01) and financial communication ([beta]= -.380, p<.001) were significant. Significant positive effects from locus of control ([beta]= .615, p<.001) and financial communication ([beta]= .338, p<.001) on financial behavior were also found. Overall fit of the model was good (CFI=.971, TLI=.953, RMSEA=.050, SRMR=.049). The findings support the inclusion of attachment as an important family relationship variable in the financial socialization process. The results also support the structure of a conceptual model of family financial socialization theory. Implications for research and practice are discussed