Financial Literacy of Young Adults: The Importance of Parental Socialization

This article tests a conceptual model of perceived parental influence on the financial literacy of young adults. Structural equation modeling was used to test whether (a) parents were perceived to influence young adults’ financial knowledge, attitudes, and behaviors and (b) the degree to which young adults’ financial attitudes mediated financial knowledge and perceived parental influence on young adults’ financial behaviors. A sample consisting of 420 college students participated in the study. Findings by the College Student Financial Literacy Survey (CSFLS) indicated that perceived parental influence had a direct and moderately significant influence on financial attitude, did not have an effect on financial knowledge, and had an indirect and moderately significant influence on financial behavior, mediated through financial attitude.