Title: Childhood Financial Socialization and Financial Fragility in Adulthood
Thursday, November 16th, 2017
Parents exert a significant influence on their children and how they learn about money management. Does this impact financial outcomes in adulthood? This study explored the influence of childhood financial socialization on adults' current financial fragility as indicated by the debt ratio and current ratio. Utilizing a sample of respondents age 16 to 84, the present results suggest that childhood financial socialization is an important determinant of financial outcomes later in life. Subjective financial knowledge had no influence on reporting healthy financial ratios. Implications for parental involvement in financial literacy programs are discussed.