Research Article
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Year 2019, Volume: 11 Issue: 2, 72 - 88, 31.07.2019
https://doi.org/10.34109/ijefs.201911205

Abstract

References

  • Furnham, A. & Milner, R. (2017). Parent‘s beliefs and behaviours about the economic socialisation, through allowances/pocket money, of their children. Psychology, 8(8):1216-1228.
  • Alsemgeest, L. (2014). Family communication about money: Why the taboo? Mediterranean Journal of Social Sciences, 5(16), 516-523.
  • Asaad, C.T. (2015). Financial literacy and financial behavior: Assessing knowledge and confidence. Financial Services Review, 24(2), 101-117.
  • Asebedo, S.D. (2016). Building financial peace: A conflict resolution framework for money arguments. Journal of Financial Therapy, 7(2), 1-15.
  • Atwood, J.D. (2012). Couples and money: The last taboo. The American Journal of Family Therapy, 40(1), 1-19.
  • Barry, H. (2014). Youth debt problems a concern, says Credit Ombud. http://www.moneyweb.co.za/archive/youth-debt-problems-a-concern-says-creditombud/. Accessed 2016/02/25.
  • Berns, R.M. (2001). Child, family, school, community: Socialization and support. United States of America: Thomson Learning.
  • Business Report. (2017). Youth debt report: Shocking #Youth Debt Crisis. https://www.iol.co.za/business-report/youth-debt-report-shocking-youth-debtcrisis-9805222. Accessed 2018/02/15.
  • Dano, Z. (2015). My studies have left me R223K in debt. http://www.iol.co.za/news/south-africa/western-cape/my-studies-have-left-mer223k-in-debt-1938010. Accessed 2016/02/02.
  • Danes, S. & Yang, Y. (2014). Assessment of the use of theories within the Journal of Financial Counseling and Planning and the contribution of the family financial socialization conceptual model. Journal of Financial Counseling and Planning, 25(1), 53-68.
  • Donnelly, L. (2012). Loans weigh students down. http://mg.co.za/article/2012-08- 31-loans-weigh-students-down. Accessed 2016/02/02.
  • Furnham, A., Von Stumm, S. & Milner, R. (2014). Moneygrams: Recalled childhood memories about money and adult money pathology. Journal of Financial Therapy, 5(1), 40-54.
  • Garman, E.T., Leech, I.E. & Grable, J.E. (1996). The negative impact of employee poor personal financial behaviors on employers. Association for Financial Counseling and Planning Education, (7), 157-167.
  • Govender, P. (2017). Universities have plans to register indebted students – but not all of them. https://mg.co.za/article/2017-01-26-00-universities-have-plans-toregister-indebted-students-but-not-all-of-them. Accessed 2018/02/14.
  • Gray, D.E. (2017). Doing research in the real world. 4th edition. Los Angeles: Sage.
  • Grinstein-Weiss, M., Spader, J., Yeo, Y.H., Taylor, A. & Freeze, E.B. (2011). Parental transfer of financial knowledge and later credit outcomes among lowand moderate-income homeowners. Children and Youth Services Review, 33(1), 78-85.
  • Gudmunson, C.G. & Danes, S.M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32(4), 644-667.
  • Gutter, M. & Copur, Z. (2011). Financial behaviours and financial well-being of college students: Evidence from a national survey. Journal of Family and Economic Issues, 32(4), 699-714.
  • Gutter, M.S., Garrison, S. & Copur, Z. (2010). Social learning opportunities and financial behaviour of college students. Family and Consumer Sciences Research Journal, 38(4), 387- 404.
  • Hair, J.F., Black, W.C., Babin, J.B. & Anderson, R.E. (2014). Multivariate data analysis. 7th edition. Essex, England: Pearson.
  • Hancock, A.M., Jorgensen, B.L. & Swanson, M.S. (2013). College students and credit card use: The role of parents, work experience, financial knowledge, and credit card attitudes. Journal of Family and Economic Issues, 34(4), 369-381.
  • Henegar, J.M., Archuleta, K., Grable, J., Britt, S., Anderson, N. & Dale, A. (2013). Credit card behavior as a function of impulsivity and mother's socialization. Association for Financial Counseling and Planning Education, 24(2), 37-49.
  • Hira, T.K., Sabri, M.F. & Loibl, C. (2013). Financial socialization's impact on investment orientation and household net worth. International Journal of Consumer Studies, 37(1), 29-35.
  • Jorgensen, B.L., Rappleyea, D.L., Schewischler, J.T. Fang, X. & Moran, M.E. (2016). The financial behaviour of emerging adults: A family financial socialisation approach. Journal of Family and Economic Issues, 38(1), 57-69.
  • Kim, J. & Chatterjee, S. (2013). Childhood financial socialization and youth adults’ financial management. Association for Financial Counselling and Planning Education, 24(1), 61-79.
  • Kim, J., Chatterjee, S. & Kim, J.E. (2012). Outstanding AFCPE Conference paper: Debt burden of young adults in the United States. Association for Financial Counseling and Planning Education, 23(2), 55-67.
  • Kirkcaldy, B., Furnham, A. & Martin, T. (2003). Parental attitudes towards pocket money, trait competitiveness and occupational stress. Journal of Managerial Psychology, 18(4), 305-323.
  • Kotzé, L. & Smit, A. (2008). Personal financial literacy and personal debt management: The potential relationship with new venture creation. The Southern African Journal of Entrepreneurship and Small Business Management, 1(1), 35- 50.
  • Louw, J., Fouche, J. & Oberholzer, M. (2013). Financial literacy needs of South African third year university students. International Business & Economics Research Journal, 12(4), 439-449.
  • Lusardi, A., Mitchell, O.S. & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358-380.
  • Manchanda, R. (2015). Impact of socialization on attitude towards money: A review. Journal of Management, 13(1), 19-31.
  • Nkosi, B. (2015). Radical approach deeded to tackle student debt. http://mg.co.za/article/2015-07-23-more-radical-approach-needed-to-tacklestudent-debt. Accessed 2016/02/02.
  • Norvilits, J.M. & MacLean, M.G. (2010). The role of parents in college students’ financial behaviour and attitudes. Journal of Economic Psychology, 31(1), 55-63.
  • Pietersen, J. & Maree, M. (2016). Standardisation of a questionnaire. In K. Maree (Ed.), First steps in research. 2nd edition. Pretoria: Van Schaik.
  • Romo, L.K. (2014). Much ado about money: Parent-child perceptions of financial disclosure. Communication Reports, 27(2), 91-101.
  • Salie, F. (2016). The year 2016 holds a dire outlook for consumers, debt experts warned. http://www.timeslive.co.za/local/2016/01/05/Outlook-for-South-Africanconsumers-dire-debt-experts-warn. Accessed 2016/02/25.
  • Sallie, N. (2015). The impact of socialisation factors on financial literacy amongst employees in the financial services industry. Masters Dissertation. Hatfield, Pretoria: University of Pretoria.
  • Serido, J., Curran, M.J., Willmarth, M., Ahn, S.Y., Shim, S. & Ballard, J. (2015). The unique role of parents and romantic partners on college students’ financial attitudes and behaviors. Family Relations, 64 (5), 696-710.
  • Shim, S., Barber, B.L., Card, N.A, Xiao, J.J. & Serido, J. (2009a). Financial socialization of first year colleague students: The role of parents, work and education. Journal of Youth and Adolescence, 39(12), 1457-1470.
  • Shim, S., Serido, J., Tang, C. & Card, N. (2015). Socialisation processes and pathways to healthy financial development for emerging young adults. Journal of Applied Development Psychology, 38, 29-38.
  • Shim, S., Xiao, J.J., Barber, B.L. & Lysons, A.C. (2009b). Pathway to life success: A conceptual model for financial well-being for young adults. Journal of Applied Development Psychology, 30(6), 708-723.
  • Smith, C. (2013). Debt among youth 'exploding'. http://www.sanews.gov.za/south-africa/students-must-avoid-debt-and-spendresponsibly. Accessed 2016/01/27.
  • Struwig, J., Roberts, B. & Gordon, S. (2013). Financial literacy in South Africa: 2013 Report. Pretoria: Financial Services Board.
  • Tang, N., Baker, A. & Peter, P. (2015). Investigating the disconnect between knowledge and behaviour: The role of parental influence and psychological characteristics in responsible financial behaviour among the young adults. Journal of Consumer Affairs, 49(2), 376-406.
  • van Deventer, M. & de Klerk, N. (2016). African generation y students ‘knowledge of personal financial management. In the South African Institute of Management Scientists (SAIMS), 28th annual conference proceeds, 1-4 September 2016, Pretoria, South Africa.
  • Webley, P. & Nyhus, E.K. (2013). Economic socialization, saving and assets in European young adults. Economics Education Review, 33, 19-30.
  • Wiid, J. & Diggines, C. (2013). Marketing Research. 2nd edition. Cape Town: Juta.
  • Wrottesley, R. (2016). Money lessons for life. Personal Finance, 66, 1st quarter. Xiao, J.J. (2008). Applying behavior theories to financial behavior. In Xiao, J. J. (Ed). Handbook of consumer finance research. New York: Springer.
  • Xiao, J.J., Chen, C. & Chen, F. (2014). Consumer financial capability and financial satisfaction. Social Indicators Research, 118(1), 415-432.
  • Xiao, J.J., Tang, C., Serido, J. & Shim, S. (2011). Antecedents and consequences of risky credit behavior among college students: Application and extension of the theory of planned behaviour. Journal of Public Policy & Marketing, 30(2), 239– 245.
  • Zikmund, G.W., Babin, B.J., Carr, J.C. & Griffin, M. (2010). Business research methods. 8th edition. Canada: South-Western, Cengage Learning.

THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR

Year 2019, Volume: 11 Issue: 2, 72 - 88, 31.07.2019
https://doi.org/10.34109/ijefs.201911205

Abstract

This study investigated which financial socialisation techniques parents used to
influence students’ financial behaviour. Few students possess satisfactory levels
of knowledge regarding financial concepts and, as a result, often struggle with
high debt levels. Although parents can play an important role in developing and
shaping the financial behaviour of students, they often fail to teach students about
money management. Studies find that for students to demonstrate responsible
financial behaviour, their financial socialisation by their parents should improve. The literature review identified seven financial socialisation techniques parents
use to socialise students about financial concepts. These include financial secrecy,
financial conflict, financial teaching, modelling of financial behaviour,
monitoring of financial behaviour, reinforcement of financial behaviour and
parental relationships. The study followed a quantitative research design to
gather the responses of 350 South African students by means of a selfadministered, structured questionnaire. Only six financial socialisation
techniques were extracted from the exploratory factor analysis. Hypotheses were
re-formulated to test the relationships between the financial socialisation
techniques of parents and the financial behaviour of students. The empirical
results revealed that three financial socialisation techniques used by parents,
namely, financial teaching and monitoring, modelling of financial behaviour and
reinforcement of financial behaviour significantly influence the financial
behaviour of students. Therefore, parents should increase financial teaching and
monitoring, the modelling of financial behaviour as well as the reinforcement of
financial behaviour to improve the financial behaviour of students. These results
have implications for parents and financial educators, and the implementation of
this study’s recommendations could ultimately improve the financial behaviour of
South African students.

References

  • Furnham, A. & Milner, R. (2017). Parent‘s beliefs and behaviours about the economic socialisation, through allowances/pocket money, of their children. Psychology, 8(8):1216-1228.
  • Alsemgeest, L. (2014). Family communication about money: Why the taboo? Mediterranean Journal of Social Sciences, 5(16), 516-523.
  • Asaad, C.T. (2015). Financial literacy and financial behavior: Assessing knowledge and confidence. Financial Services Review, 24(2), 101-117.
  • Asebedo, S.D. (2016). Building financial peace: A conflict resolution framework for money arguments. Journal of Financial Therapy, 7(2), 1-15.
  • Atwood, J.D. (2012). Couples and money: The last taboo. The American Journal of Family Therapy, 40(1), 1-19.
  • Barry, H. (2014). Youth debt problems a concern, says Credit Ombud. http://www.moneyweb.co.za/archive/youth-debt-problems-a-concern-says-creditombud/. Accessed 2016/02/25.
  • Berns, R.M. (2001). Child, family, school, community: Socialization and support. United States of America: Thomson Learning.
  • Business Report. (2017). Youth debt report: Shocking #Youth Debt Crisis. https://www.iol.co.za/business-report/youth-debt-report-shocking-youth-debtcrisis-9805222. Accessed 2018/02/15.
  • Dano, Z. (2015). My studies have left me R223K in debt. http://www.iol.co.za/news/south-africa/western-cape/my-studies-have-left-mer223k-in-debt-1938010. Accessed 2016/02/02.
  • Danes, S. & Yang, Y. (2014). Assessment of the use of theories within the Journal of Financial Counseling and Planning and the contribution of the family financial socialization conceptual model. Journal of Financial Counseling and Planning, 25(1), 53-68.
  • Donnelly, L. (2012). Loans weigh students down. http://mg.co.za/article/2012-08- 31-loans-weigh-students-down. Accessed 2016/02/02.
  • Furnham, A., Von Stumm, S. & Milner, R. (2014). Moneygrams: Recalled childhood memories about money and adult money pathology. Journal of Financial Therapy, 5(1), 40-54.
  • Garman, E.T., Leech, I.E. & Grable, J.E. (1996). The negative impact of employee poor personal financial behaviors on employers. Association for Financial Counseling and Planning Education, (7), 157-167.
  • Govender, P. (2017). Universities have plans to register indebted students – but not all of them. https://mg.co.za/article/2017-01-26-00-universities-have-plans-toregister-indebted-students-but-not-all-of-them. Accessed 2018/02/14.
  • Gray, D.E. (2017). Doing research in the real world. 4th edition. Los Angeles: Sage.
  • Grinstein-Weiss, M., Spader, J., Yeo, Y.H., Taylor, A. & Freeze, E.B. (2011). Parental transfer of financial knowledge and later credit outcomes among lowand moderate-income homeowners. Children and Youth Services Review, 33(1), 78-85.
  • Gudmunson, C.G. & Danes, S.M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32(4), 644-667.
  • Gutter, M. & Copur, Z. (2011). Financial behaviours and financial well-being of college students: Evidence from a national survey. Journal of Family and Economic Issues, 32(4), 699-714.
  • Gutter, M.S., Garrison, S. & Copur, Z. (2010). Social learning opportunities and financial behaviour of college students. Family and Consumer Sciences Research Journal, 38(4), 387- 404.
  • Hair, J.F., Black, W.C., Babin, J.B. & Anderson, R.E. (2014). Multivariate data analysis. 7th edition. Essex, England: Pearson.
  • Hancock, A.M., Jorgensen, B.L. & Swanson, M.S. (2013). College students and credit card use: The role of parents, work experience, financial knowledge, and credit card attitudes. Journal of Family and Economic Issues, 34(4), 369-381.
  • Henegar, J.M., Archuleta, K., Grable, J., Britt, S., Anderson, N. & Dale, A. (2013). Credit card behavior as a function of impulsivity and mother's socialization. Association for Financial Counseling and Planning Education, 24(2), 37-49.
  • Hira, T.K., Sabri, M.F. & Loibl, C. (2013). Financial socialization's impact on investment orientation and household net worth. International Journal of Consumer Studies, 37(1), 29-35.
  • Jorgensen, B.L., Rappleyea, D.L., Schewischler, J.T. Fang, X. & Moran, M.E. (2016). The financial behaviour of emerging adults: A family financial socialisation approach. Journal of Family and Economic Issues, 38(1), 57-69.
  • Kim, J. & Chatterjee, S. (2013). Childhood financial socialization and youth adults’ financial management. Association for Financial Counselling and Planning Education, 24(1), 61-79.
  • Kim, J., Chatterjee, S. & Kim, J.E. (2012). Outstanding AFCPE Conference paper: Debt burden of young adults in the United States. Association for Financial Counseling and Planning Education, 23(2), 55-67.
  • Kirkcaldy, B., Furnham, A. & Martin, T. (2003). Parental attitudes towards pocket money, trait competitiveness and occupational stress. Journal of Managerial Psychology, 18(4), 305-323.
  • Kotzé, L. & Smit, A. (2008). Personal financial literacy and personal debt management: The potential relationship with new venture creation. The Southern African Journal of Entrepreneurship and Small Business Management, 1(1), 35- 50.
  • Louw, J., Fouche, J. & Oberholzer, M. (2013). Financial literacy needs of South African third year university students. International Business & Economics Research Journal, 12(4), 439-449.
  • Lusardi, A., Mitchell, O.S. & Curto, V. (2010). Financial literacy among the young. Journal of Consumer Affairs, 44(2), 358-380.
  • Manchanda, R. (2015). Impact of socialization on attitude towards money: A review. Journal of Management, 13(1), 19-31.
  • Nkosi, B. (2015). Radical approach deeded to tackle student debt. http://mg.co.za/article/2015-07-23-more-radical-approach-needed-to-tacklestudent-debt. Accessed 2016/02/02.
  • Norvilits, J.M. & MacLean, M.G. (2010). The role of parents in college students’ financial behaviour and attitudes. Journal of Economic Psychology, 31(1), 55-63.
  • Pietersen, J. & Maree, M. (2016). Standardisation of a questionnaire. In K. Maree (Ed.), First steps in research. 2nd edition. Pretoria: Van Schaik.
  • Romo, L.K. (2014). Much ado about money: Parent-child perceptions of financial disclosure. Communication Reports, 27(2), 91-101.
  • Salie, F. (2016). The year 2016 holds a dire outlook for consumers, debt experts warned. http://www.timeslive.co.za/local/2016/01/05/Outlook-for-South-Africanconsumers-dire-debt-experts-warn. Accessed 2016/02/25.
  • Sallie, N. (2015). The impact of socialisation factors on financial literacy amongst employees in the financial services industry. Masters Dissertation. Hatfield, Pretoria: University of Pretoria.
  • Serido, J., Curran, M.J., Willmarth, M., Ahn, S.Y., Shim, S. & Ballard, J. (2015). The unique role of parents and romantic partners on college students’ financial attitudes and behaviors. Family Relations, 64 (5), 696-710.
  • Shim, S., Barber, B.L., Card, N.A, Xiao, J.J. & Serido, J. (2009a). Financial socialization of first year colleague students: The role of parents, work and education. Journal of Youth and Adolescence, 39(12), 1457-1470.
  • Shim, S., Serido, J., Tang, C. & Card, N. (2015). Socialisation processes and pathways to healthy financial development for emerging young adults. Journal of Applied Development Psychology, 38, 29-38.
  • Shim, S., Xiao, J.J., Barber, B.L. & Lysons, A.C. (2009b). Pathway to life success: A conceptual model for financial well-being for young adults. Journal of Applied Development Psychology, 30(6), 708-723.
  • Smith, C. (2013). Debt among youth 'exploding'. http://www.sanews.gov.za/south-africa/students-must-avoid-debt-and-spendresponsibly. Accessed 2016/01/27.
  • Struwig, J., Roberts, B. & Gordon, S. (2013). Financial literacy in South Africa: 2013 Report. Pretoria: Financial Services Board.
  • Tang, N., Baker, A. & Peter, P. (2015). Investigating the disconnect between knowledge and behaviour: The role of parental influence and psychological characteristics in responsible financial behaviour among the young adults. Journal of Consumer Affairs, 49(2), 376-406.
  • van Deventer, M. & de Klerk, N. (2016). African generation y students ‘knowledge of personal financial management. In the South African Institute of Management Scientists (SAIMS), 28th annual conference proceeds, 1-4 September 2016, Pretoria, South Africa.
  • Webley, P. & Nyhus, E.K. (2013). Economic socialization, saving and assets in European young adults. Economics Education Review, 33, 19-30.
  • Wiid, J. & Diggines, C. (2013). Marketing Research. 2nd edition. Cape Town: Juta.
  • Wrottesley, R. (2016). Money lessons for life. Personal Finance, 66, 1st quarter. Xiao, J.J. (2008). Applying behavior theories to financial behavior. In Xiao, J. J. (Ed). Handbook of consumer finance research. New York: Springer.
  • Xiao, J.J., Chen, C. & Chen, F. (2014). Consumer financial capability and financial satisfaction. Social Indicators Research, 118(1), 415-432.
  • Xiao, J.J., Tang, C., Serido, J. & Shim, S. (2011). Antecedents and consequences of risky credit behavior among college students: Application and extension of the theory of planned behaviour. Journal of Public Policy & Marketing, 30(2), 239– 245.
  • Zikmund, G.W., Babin, B.J., Carr, J.C. & Griffin, M. (2010). Business research methods. 8th edition. Canada: South-Western, Cengage Learning.
There are 51 citations in total.

Details

Primary Language English
Journal Section Research Article
Authors

Dr Zl Antoni This is me

C Rootman This is me

Fw Struwig This is me

Publication Date July 31, 2019
Published in Issue Year 2019 Volume: 11 Issue: 2

Cite

APA Antoni, D. Z., Rootman, C., & Struwig, F. (2019). THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR. International Journal of Economics and Finance Studies, 11(2), 72-88. https://doi.org/10.34109/ijefs.201911205
AMA Antoni DZ, Rootman C, Struwig F. THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR. IJEFS. July 2019;11(2):72-88. doi:10.34109/ijefs.201911205
Chicago Antoni, Dr Zl, C Rootman, and Fw Struwig. “THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR”. International Journal of Economics and Finance Studies 11, no. 2 (July 2019): 72-88. https://doi.org/10.34109/ijefs.201911205.
EndNote Antoni DZ, Rootman C, Struwig F (July 1, 2019) THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR. International Journal of Economics and Finance Studies 11 2 72–88.
IEEE D. Z. Antoni, C. Rootman, and F. Struwig, “THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR”, IJEFS, vol. 11, no. 2, pp. 72–88, 2019, doi: 10.34109/ijefs.201911205.
ISNAD Antoni, Dr Zl et al. “THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR”. International Journal of Economics and Finance Studies 11/2 (July 2019), 72-88. https://doi.org/10.34109/ijefs.201911205.
JAMA Antoni DZ, Rootman C, Struwig F. THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR. IJEFS. 2019;11:72–88.
MLA Antoni, Dr Zl et al. “THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR”. International Journal of Economics and Finance Studies, vol. 11, no. 2, 2019, pp. 72-88, doi:10.34109/ijefs.201911205.
Vancouver Antoni DZ, Rootman C, Struwig F. THE INFLUENCE OF PARENTAL FINANCIAL SOCIALISATION TECHNIQUES ON STUDENT FINANCIAL BEHAVIOUR. IJEFS. 2019;11(2):72-88.