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Financial Socialization

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Abstract

Social processes play a major role in developing children into capable producers, consumers, and agents of financial socialization in adulthood. The latest research continues to demonstrate that parents exert more influence than educators, peers, media, and self-learning in promoting good financial behavior and experiencing financial wellbeing, although all these factors play a role in financial socialization. Research has also progressed in elucidating the mechanisms of social interaction and the psychosocial characteristics of individuals that pair with financial literacy to achieve desirable financial outcomes. Longer periods of financial interdependence are realities for many families living in fluctuating economies that require ever greater investments in education, often accompanied by student loan debt, to achieve long-term financial success. Thus, it is important that future financial socialization research considers longitudinal processes that span adolescence, early adulthood, and the midlife, while better attending to economic realities of time and place. Theoretical foundations of financial socialization have continued to take shape and can benefit from further development and use as the basis for empirical work.

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Authors and Affiliations

  1. Department of Human Development and Family Studies, Iowa State University, 4380 Palmer, Suite 1323, Ames, IA, 50011, USA

    Clinton G. Gudmunson Ph.D.

  2. Department of Human Development and Family Studies, Iowa State University, 0052 LeBaron Hall, Ames, IA, 50011, USA

    Sara K. Ray Ph.D. (student)

  3. Department of Human Development and Family Studies, University of Rhode Island, Transition Center, Kingston, RI, 02881, USA

    Jing Jian Xiao Ph.D.

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  1. Clinton G. Gudmunson Ph.D.
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  2. Sara K. Ray Ph.D.
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  3. Jing Jian Xiao Ph.D.
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Correspondence to Clinton G. Gudmunson Ph.D. .

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Editors and Affiliations

  1. Univ of Rhode Island, Transition Center, Department of Human Development and Family Studies,, Kingston, Rhode Island, USA

    Jing Jian Xiao

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Gudmunson, C.G., Ray, S.K., Xiao, J.J. (2016). Financial Socialization. In: Xiao, J. (eds) Handbook of Consumer Finance Research. Springer, Cham. https://doi.org/10.1007/978-3-319-28887-1_5

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