Emerging adults' financial capability: A financial socialization perspective

This exploratory qualitative research uses the United Kingdom as a case study to understand how past and present financial socialization agents have either enhanced or inhibited emerging adults' financial capability in order to highlight potential opportunities for future policy and practice interventions. Three primary socialization agents were identified. The family as trusted primary advisor continues well into adulthood, even where family financial capability may be low. Beyond this, emerging adults only reluctantly engage with their bank, rely on just‐in‐time experiential learning or self‐socialize via diving, often with false confidence, into the internet. Although there are many quantitative studies on financial socialization, this paper fills a gap by taking a deeply qualitative approach showing, for the first time, empirically highlighting the limited number of financial socialization agents through the voices of emerging adults. The findings contradict previous socialization research that suggests parental socialization reduces into adulthood.     

Are parents gender neutral when financing their children's consumption?

Children are consumers from early on, but they are dependent on financial support from their parents for many years. Based on a survey among 1173 Norwegian children aged 8–24 years, we examine how children's consumption is financed and how their main financial sources change during childhood, distinguishing between pocket money and odd jobs on the one hand and gainful employment and study loans on the other. Our analysis demonstrates how parental monetary support decreases as years go by and is replaced by gainful employment and study loans. We ask whether parents are gender neutral in supporting their children's consumption or not. This is done by comparing the distribution of pocket money among girls and boys, as well as the amount of money given to the respective genders for special consumer goods. Girls and boys have divergent preferences and often exhibit different spending patterns. The analysis of the six selected fields of consumption showed significant gender differences in four of them. By comparing what children choose to pay for with their own money with what they influence their parents to pay for, we find that parents' financial support tend to have a moderating effect on their children's own gender‐biased preferences.     

Political Marketing Funding and Expenditure in the UK General Election Campaign of 2005.

The 2005 UK General Election will be the second for which detailed data will be available from the Electoral Commission. Whilst this will not be published until 2006, it is possible using 2001 data and participant accounts to identify the overall funding patterns of the three major party campaigns and changes in the way that was spent. In broad terms, funding and expenditure changed little in money terms from 2001 to 2005, largely due to the impact of financial constraints and regulation on the parties. However, in 2005 for the first time, both the Labour and Conservative parties made significant use of direct marketing methods, notably telephone and direct mail to communicate with target voters in closely contested constituencies. The financial constraints on the parties and the strict restrictions on donations have put the question of significant state funding for political parties back on the agenda. The paper summarises the UK regulatory framework on electoral expenditure and political donations and considers the arguments for and against expanding state funding.     

Trends in disposable income among teenage boys and girls in Finland from 1977 to 2003

This article explores changes in the money Finnish young people aged 12–18 years have at their disposal, over a 26‐year period 1977–2003. Previous studies suggest that the amount of money young people have is not necessarily dependent on traditional socio‐economic variables, but there are no systematic studies on the development of the disposable income of the teenagers. The analyses of this study are based on a series of 14 biannual nationally representative surveys of 12‐, 14‐, 16‐ and 18‐year‐olds in Finland from 1977 to 2003, with a total of 84 404 respondents. Time‐trends are shown and analysed by gender, family structure, place of residence and socio‐economic status of family using analysis of variance and linear regression modelling. The results show that teenagers’ disposable money has increased little between 1977 and 2003 in comparison with the general income development. Economic booms and depressions can be seen in rising and falling amounts of disposal money, particularly among 16‐ to 18‐year‐old respondents. There were also significant differences between the genders. Young boys clearly had more money at their disposal than young girls. Children of single parents had more money than their peers from nuclear families. Urban youth had more money than those living in the countryside and the difference increased during the period under examination. The socio‐economic position of the family had little impact.     

Gender differences in financial socialization in the home—An exploratory study

Recent literature has stressed the need for research examining the causes of females in general having lower levels of financial literacy than males. This article uses social cognitive theory of gender development as a framework to propose differing financial socialization of children in the home by gender as a possible cause of gender differences later in life. Evidence is found of gender based differences in the financial socialization of eleven and twelve year olds. Findings include more frequent parent‐child discussions being correlated to more positive financial attitudes, but not to saving behaviour. Saving behaviour of children is influenced by attitudes to money along with the presence of parents when spending, which is subject to a same sex gender bias for girls, with large effect sizes. Girls are over 200% more likely to state they save some of their pocket money if their mother is present when they spend their pocket money, compared to having no parent present. This difference does not exist for male children. When a boy is with both parents when spending, they are 245% more likely to report saving some of their pocket money then when neither parent is present. Having a father present when spending does not yield significantly different results to when no parent is present. These findings of gender biased financial socialization in the home are important considerations for the design of school‐based financial literacy programmes. Specifically, these programmes should consider a goal of encouraging discussion and questioning gender based attitudes and roles in the home. They are also important findings in terms of going some way to explaining the existence of a gender difference in financial knowledge in adulthood.     

School and family environments promote adolescents' financial confidence: Indirect paths to financial literacy skills in Finnish PISA 2018

This study investigates the associations of adolescents' financial socialization factors—financial education in school and families—with financial confidence (i.e., confidence in using financial and digital financial services). In addition, we examine how financial socialization factors indirectly relate to financial literacy skills through financial confidence and the role of demographic factors (adolescent gender, grade level, parental education, family wealth) on financial socialization, financial confidence, and financial literacy scores. We used data on the 4328 Finnish 15-year-olds participating in the 2018 Programme for International Student Assessment (PISA). We measured financial literacy by cognitive test items and assessed financial socialization and financial confidence by adolescent questionnaires. First, the results showed that financial education in school positively predicted adolescents' confidence in using financial and digital financial services. Second, financial education at schools and in families indirectly predicted students' financial literacy through confidence in using digital financial services. Third, older adolescents were more exposed to financial education at school and in families, whereas adolescents from wealthier families and girls (vs. boys) were exposed to a more frequent discussion of financial matters with parents at home. Furthermore, the boys were more confident in using financial services than the girls, although the financial literacy score did not differ by gender; older adolescents were more confident in using financial services and achieved better financial literacy than younger ones. Finally, higher parental education in the family related to higher financial literacy but not to higher financial confidence, whereas family wealth was related to higher financial confidence but not financial literacy.     

“Four Bright Coins Shining at Me”: Financial Education in Childhood,Financial Confidence in Adulthood

We analyze the relation between receiving an allowance (pocket money) in childhood and financial confidence in adulthood. We measure this confidence using self‐reported financial knowledge. Our empirical exercise is based on information provided by a Dutch survey carried out in 2015. We compute our estimates by controlling for parental attitudes and by using a “within‐family” fixed effect model. The results are robust and suggest a long‐lasting effect of pocket money as an easily implementable and informal educational vehicle to help children acquire basic financial concepts and develop good habits, such as budgeting.     

Financial Success and the Good Life: What have We Learned from Empirical Studies in Psychology?

An empirical study published in the Journal of Personality and Social Psychology (King, L. A. and C. K. Nappa: 1998, Journal of Personality and Social Psychology 75(1), 156–165) concludes that people generally believe meaning and happiness are essential elements of the good life, whereas money is relatively unimportant. Yet, the authors also state that although “we do know what it takes to make a good life...we still behave as if we did not.” The authors are suggesting that despite a general belief that money is relatively unimportant in creating happiness, many people continue to focus their behaviors on increasing income and wealth. This is the classic conflict between the folk wisdom that money cannot buy happiness, on the one hand, and a continued focus by many people on achieving material success on the other. The issue is of particular importance to business professionals, not only because profit maximization is the central focus of business, but also because college students often pursue business as a profession for the express purpose of maximizing personal income and wealth. In the business world a focus on personal financial success is the norm. Wealth and income are honored. The purpose of this article is to critically analyze psychological studies comparing happiness and financial success. The results are then contrasted with philosophical wisdom and religious writings comparing happiness and money. The intent is to determine whether psychological studies provide incremental insights into the connection between financial success and happiness. Kent Swift PhD, is a professor in the College of Business Sciences at Zayed University. He has been teaching business at both the undergraduate and graduate level in science 1978, and he has published articles on a variety of business topics. Dr. Swift received his PhD from the University of Wisconsin – Madison.     

Financial socialization's impact on investment orientation and household net worth

This study investigates the role of financial socialization for investment orientation and household net worth. Combining consumer socialization literature with findings in the behavioural finance literature, survey data were analysed to (1) investigate the relationship among household net worth, financial socialization, indicators of investment orientation and socio-demographic investor characteristics; (2) examine the influence of socio-demographic investor characteristics and financial socialization on indicators of investment orientation; and (3) test whether financial socialization affects household wealth above and beyond socio-demographic and investment orientation factors. Parents emerged as a relevant socialization agent of investors, influencing investment regularity and household net worth above and beyond other factors. This result extends earlier findings about parents' role for a person's financial management and savings behaviour to the investment context. Based on our findings, educators may want to involve parents in their efforts. They may want to emphasize the importance of starting investing regularly at an early age and of continuing to increase involvement in investing over the years. Financial planners and financial counsellors may consider emphasizing these two practices for their clients and involve children of their clients when and where appropriate.     

The use of small instant loans among young adults – a gateway to a consumer insolvency?

The aim of this paper is to study 18‐ to 29‐year‐old Finnish consumers' use of instant small loans (i.e. SMS loan) and other consumer credit services that have increased notably in the past few years. We examine what kind of expenditures instant credit is used for and focus also on young consumers' financial situation and their perceptions of themselves as money handlers. The research method is quantitative, and data are derived from an open online survey (n = 1610). Our results reveal that consumer credit is used by young people in all income brackets and employment positions. However, there is a clear connection between certain life‐course stages (young, single parent), financial positions (low income), employment situations (marginal) and the propensity to take instant loans and consumer credit. The young people who take an instant loan once are likely to do it again. Typical purposes of use included buying alcohol, cigarettes and partying. For some consumers, the use of small loans is part of controlled and economical use of money. However, particularly in the low‐income brackets, it is also common to buy food and to repay credit or interest. Young people, who use instant loans recognize flaws in their money management and see themselves as ‘wasteful’ consumers more often than those who do not use instant loans. On the basis of this empirical study, it is unquestioned that young people's consumer education needs to be strengthened. In Finland, this need has already been recognized in both consumer policy and teacher education.     

Determinants of indebtedness among young adults: Impacts of lender guidelines,explicit information and financial (over)confidence

For most people, borrowing money is a necessary aspect of life in the 21st century. Wisely handled, loans give consumers access to consumption too expensive for most individuals to purchase with cash, such as homes and cars. However, history shows that taking on too much debt can be detrimental for the individual consumer as well as society as a whole. In this paper, we investigate determinants of over‐indebtedness among young adults. We perform three studies in a setting focused on buying and borrowing money for a home. We show that, compared with an overall mortgage amount, explicit information about monthly payments reduces the tendency to take on too much debt (Study 1), that the amount borrowed depends on standards regarding the loan amount communicated through guidelines from the lender (Study 2), and that borrowers who are overconfident about their financial abilities tend to borrow more than less confident individuals (Study 3). These determinants and their policy implications are discussed.     

Gender differences in recollections of economic socialization,financial self-efficacy,and financial literacy

The OECD/INFE international surveys of adult financial literacy (OECD/INFE 2016, 2020) show gender differences in financial literacy in developed countries in Europe. In this study, we examine whether these differences can be explained by gender differences in parental economic socialization using the Dutch 2018 DHS household survey. We investigate whether respondents' recollection of economic socialization when young predict their adult economic behavior and self-assessed financial knowledge. The results from ordinal logit and logistic regressions and for nonlinear equations decompositions reveal gender differences in the recollection of economic socialization and in how socialization practices are related to economic behavior and self-assessed financial knowledge. Men have to a greater degree than women been socialized in terms of having paid work outside the home, while women more often than men report that their parents controlled their spending. Moreover, we find gender differences in how men and women benefitted from the same socialization practices.     

A tail of two personalities: How canine companions shape relationships and well-being

More people own pets than ever before. Further, people spend more money on pets than they ever have. The increase in pet ownership and spending on pets provides evidence of the importance humans place on the pets in their lives. This study explores the relationships between humans and their animal companions, specifically canine companions. Drawing on decades of research on personality, relationships, and well-being, the current research takes a cross-species approach to examine the influence of pet personalities on human outcomes. Using personality assessments for human and dog, the article examines how both personalities impact relationship satisfaction. The article also examines how human-dog closeness impacts owner well-being. Some findings corroborate results found in the human personality and relationship literature, but others point to some unique aspects of the human-dog bond. These results not only shed light on the human-dog relationship but also suggest some departures from the human relationship literature that could be explored in future research.     

Towards Shared Social Responsibility: A Study of Consumers’ Willingness to Donate Micro-Insurances when Taking Out Their Own Insurance

In recent years, the concepts of charity and development aid have changed significantly. Present concepts combine direct money transfer with co-production, knowledge sharing and the development of products and services designed for the need of developing and transition economies. The concept of micro-financing is a financial service which has proven to allow for entrepreneurs in the respective countries to start up their businesses. A relatively new financial product for these countries is micro-insurance. This article deals with the question whether consumers in the Netherlands are willing to donate micro-insurances and which factors influence this willingness to contribute to the non-profit micro-insurance approach of an insurance company. The data were collected with questionnaires among a sample of the Dutch population (N = 504). The data have been processed in a one-way between-groups ANOVA, a paired sample t test and an ordinal regression analysis. The results show that approximately half of the Dutch consumers are willing to pay an additional amount on their insurance premium for the donation of micro-insurances. The amount of the insurance premium did, however, not affect the willingness to donate (WTD). If consumers could choose the beneficiary less people are willing to donate, yet those people are willing to donate more money. In conclusion, there is readiness among consumers to contribute to micro-insurance via an insurance company that assists in setting up micro-insurance projects. This indicates a possible role for companies to act as an intermediary between philanthropic acts and consumers.     

The moral discourse of banks about money laundering: an analysis of the narrative from Paul Ricoeur's philosophical perspective

In this paper, we will use Ricoeur's philosophy in order to present money laundering as a metaphor and a narrative. We will firstly analyze the corporate moral discourse of 10 banks about money laundering. We have selected 10 banks that have codes of ethics and a corporate moral discourse about money laundering. The banks come from six countries: United States (2), Canada (2), Switzerland (2), Spain (2), Germany (1), and Belgium (1). We will see how their moral discourse about money laundering contributes to deepen the understanding of money laundering as a narrative. Then, we will see to what extent Ricoeur's philosophy could help us to better understand the moral discourse of banks. We will describe the main components of money laundering as a narrative.     

Mobile Money and Financial Inclusion in Sub-Saharan Africa: the Moderating Role of Social Networks

ABSTRACT

The purpose of this article is to test the moderating effect of social networks in the relationship between mobile money usage and financial inclusion in rural Uganda. The results revealed that there is a significant and positive moderating effect of social networks in the relationship between mobile money usage and financial inclusion in rural Uganda. Besides, mobile money usage and social networks have direct and significant effects on financial inclusion in rural Uganda. Thus, the findings suggest that existence of social networks of strong and weak ties among mobile money users promote financial inclusion in rural Uganda. Previous studies have concentrated only on investigating the impact of mobile money in promoting financial inclusion in developing economies, especially in Sub-Saharan Africa. However, this particular study introduces the moderating effect of social networks in the relationship between mobile money usage and financial inclusion in rural Uganda, which seems to be sparse and lacking in literature.     

Employer’s Use of Social Networking Sites: A Socially Irresponsible Practice

The Internet has drastically changed how people interact, communicate, conduct business, seek jobs, find partners, and shop. Millions of people are using social networking sites to connect with others, and employers are using these sites as a source of background information on job applicants. Employers report making decisions not to hire people based on the information posted on social networking sites. Few employers have policies in place to govern when and how these online character checks should be used and how to ensure that the information viewed is accurate. In this article, we explore how these inexpensive, informal online character checks are harmful to society. Guidance is provided to employers on when and how to use these sites in a socially responsible manner.     

Young People Are the Front Lines of Financial Inclusion: A Review of 45 Years of Research

Amidst concerns about percentages of households that remain unbanked or underbanked, policy endeavors have emerged to promote financial inclusion by making financial products such as savings accounts readily available. While these endeavors have primarily concentrated on households, young people may be the front lines of financial inclusion because they may be more likely to be banked in young adulthood and beyond when they start off with savings accounts earlier in life. This article addresses young people's financial inclusion by comprehensively reviewing 60 research studies on young people's savings, discussing the role of the family in young people's financial inclusion, discussing financial inclusion from an institutional perspective, presenting policy implications, and identifying gaps in knowledge and opportunities for research. Policies that open savings accounts for young people early in life may be a promising strategy for extending financial inclusion and preventing unbanked or underbanked status later in life.     

Does It Matter What Managers Do?

After half a century of research, we now have a fair idea of what managers do. This differs both from the "heroic self-image" idealisation and from the sanitised "management science" idealisation. Despite IT and all the talk of empowerment, management as a profession in its own right is, if anything, becoming more, not less, widespread. What managers do therefore matters simply because so many people are doing "management" as their main role. But does what managers do matter in terms of its effects on the people being managed, and, if so, how? The answer is obviously yes, but the central message of this article is how little we know through systematic research about this – particularly given how much preaching there is on how to do it well.     

Can we talk about ethics anymore?

It is difficult to talk about ethics in Australia these days, because (a) the different metamoral languages make it difficult for people to communicate on moral matters; (b) there are no generally accepted criteria for assessing the meaning and truth of moral propositions; and (c) witness talks larger in these matters than theoretical expertise, and the ideals that favour the acceptance of credible role models are no longer generally accepted. We should not assume that we can say anything meaningful about “business ethics”. One reason for this arises from the Australian experience of the '80s: the fruits of a profound cynicism are now with us, as prominent figures find themselves in court to defend their actions, and seem amazed that they are accused of doing anything wrong at all. We may want to stop something like this from happening again, but if the language of business ethics meant nothing to these people, how can we hope that it will mean much to us, or to future generations? A second reason (or group of reasons) arises from the nature of ethics itself. Business ethics, after all, does not exist in a vacuum; its language will not mean much to people who do not agree on what they mean whenever they talk about right and wrong. Some people, for example, measure the rightness or wrongness of actions in terms of their consequences; for others, on the other hand, some actions are wrong, no mater what the consequences. How are they to talk to each other? What is at issue here is what ethical propositions mean, and how one can measure their truth. And there is another reason. As Socrates pointed out long ago, ethics is not a theoretical science, which can be taught and learnt as dispassionately as mathematics. It is practical, and so engages teacher and pupil in an entirely different way: one cannot say one thing, and do another. When you have read a journal like this, will you necessarily be a better person or a more honest businessman/woman?