Exploring the Impact of Family Financial Socialization on Household Money Management
Keywords:
Family Financial Socialization, Household Financial Management, Financial Behavior, Financial Literacy, literature reviewAbstract
Family financial socialization is the initial process in the formation of individual financial behavior. Parents play a crucial role in instilling financial values, knowledge, and habits that influence overall family financial management. Data were collected through a systematic literature review of scientific articles from 2015-2022 from Scopus, Google Scholar, and other databases, with a focus on keywords related to family financial socialization and financial management. The articles were analyzed using a content approach, identifying the relationship between parents' financial socialization practices and family financial management behaviors, such as saving, budgeting, and expense management. Good financial socialization, such as regular conversations and parental role models, contributes to the formation of positive financial habits in the family. Families that actively discuss their finances tend to be better financially prepared and better able to avoid financial crises. Financial socialization within the family significantly influences the quality of household financial management. Parents' active role in financial education needs to be strengthened to foster a more financially literate and independent generation.Downloads
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References
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Zhao, H., & Zhang, L. (2020). Talking money at home: the value of family financial socialization. International Journal of Bank Marketing, 38(7), 1617–1634. https://doi.org/10.1108/IJBM-04-2020-0174
Zhu, A. Y. F. (2019). School financial education and parental financial socialization: Findings from a sample of Hong Kong adolescents. Children and Youth Services Review, 107(October). https://doi.org/10.1016/j.childyouth.2019.104532
Zupančič, M., Poredoš, M., & Lep, Ž. (2023). Intergenerational Model of Financial Satisfaction and Parent-Child Financial Relationship. Journal of Social and Personal Relationships, 40(8), 2568–2591. https://doi.org/10.1177/02654075231153352
Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic Inquiry, 54(1), 675–697. https://doi.org/10.1111/ecin.12255
Fan, L., Lim, H., & Lee, J. M. (2021). Young Adults’ Financial Advice‐seeking Behavior: The Roles of Parental Financial Socialization. Family Relations, 71(3), 1226–1246. https://doi.org/10.1111/fare.12625
Gumbo, L., Mveku, B., Simon, C., Mutero, Tanaka. T. T., & Cornick, C. E. (2022). The Effect of Financial Literacy on Household Financial Decision Making in Zimbabwe. International Journal of Research Publications, 103(1). https://doi.org/10.47119/ijrp1001031620223420
Kim, J., Gutter, M. S., & Spangler, T. (2017). Review of Family Financial Decision Making: Suggestions for Future Research and Implications for Financial Education. Journal of Financial Counseling and Planning, 28(2), 253–267. https://doi.org/10.1891/1052-3073.28.2.253
Mahapatra, M. S., Xiao, J. J., Mishra, R. K., & Meng, K. (2023). Parental Financial Socialization and Life Satisfaction of College Students: Mediation and Moderation Analyses. Young Consumers Insight and Ideas for Responsible Marketers, 25(1), 65–83. https://doi.org/10.1108/yc-10-2022-1626
Mengist, W., Soromessa, T., & Legese, G. (2020). Method for conducting systematic literature review and meta-analysis for environmental science research. MethodsX, 7, 100777. https://doi.org/10.1016/j.mex.2019.100777
Noh, M. (2022). Effect of parental financial teaching on college students’ financial attitude and behavior: The mediating role of self-esteem. Journal of Business Research, 143(February 2021), 298–304. https://doi.org/10.1016/j.jbusres.2022.01.054
OJK. (2020). Strategi Nasional Literasi Keuangan Indonesia (SNLKI) 2021 - 2025. SLNKI, 1–130. https://www.ojk.go.id/id/berita-dan-kegiatan/publikasi/Pages/Strategi- Nasional-Literasi-Keuangan-Indonesia-2021-2025.aspx
Othuon, V. O., & Othuon, C. (2023). Household Financial Literacy: The Case of Nonperforming Consumer Credit in Kenya. Rjfa. https://doi.org/10.7176/rjfa/14-20-05
Pak, T., Fan, L., & Chatterjee, S. (2023). Financial Socialization and Financial Well‐being in Early Adulthood: The Mediating Role of Financial Capability. Family Relations, 73(3), 1664–1685. https://doi.org/10.1111/fare.12959
Pepur, S., Bulog, I., & Smiljanić, A. R. (2022). Household Financial Fragility During COVID-19: The Power of Financially Literate Women. Zagreb International Review of Economics and Business, 25(s1), 31–44. https://doi.org/10.2478/zireb-2022- 0023
Remund, D. L. (2010). Financial Literacy Explicated: The Case for a Clearer Definition in an Increasingly Complex Economy. Journal of Consumer Affairs, 44(2), 276–
295. https://doi.org/10.1111/j.1745-6606.2010.01169.x
Shim, S., Serido, J., Tang, C., & Card, N. (2015). Socialization processes and pathways to healthy financial development for emerging young adults. Journal of Applied Developmental Psychology, 38, 29–38. https://doi.org/10.1016/j.appdev.2015.01.002
Šilinskas, G., Ahonen, A., & Wilska, T. (2023). School and Family Environments Promote Adolescents’ Financial Confidence: Indirect Paths to Financial Literacy Skills in Finnish <scp>PISA</Scp> 2018. Journal of Consumer Affairs, 57(1), 593– 618. https://doi.org/10.1111/joca.12513
Sundarasen, D. S., Rahman, M. S., & Danaraj, J. (2016). Impact of Financial Literacy, Financial Socialization Agents, and Parental Norms on Money Management. Journal of Business Studies Quarterly, 8(1), 140–156.
Tang, N. (2016). Like Father Like Son: How Does Parents’ Financial Behavior Affect Their Children’s Financial Behavior? Journal of Consumer Affairs, 51(2), 284–311. https://doi.org/10.1111/joca.12122
Utkarsh, Pandey, A., Ashta, A., Spiegelman, E., & Sutan, A. (2020). Catch them young: Impact of financial socialization, financial literacy and attitude towards money on financial well-being of young adults. International Journal of Consumer Studies, 44(6), 531–541. https://doi.org/10.1111/ijcs.12583
Xu, S., Yang, Z., Ali, S. T., Li, Y., & Cui, J. (2022). Does Financial Literacy Affect Household Financial Behavior? The Role of Limited Attention. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.906153
Zhao, H., & Zhang, L. (2020). Talking money at home: the value of family financial socialization. International Journal of Bank Marketing, 38(7), 1617–1634. https://doi.org/10.1108/IJBM-04-2020-0174
Zhu, A. Y. F. (2019). School financial education and parental financial socialization: Findings from a sample of Hong Kong adolescents. Children and Youth Services Review, 107(October). https://doi.org/10.1016/j.childyouth.2019.104532
Zupančič, M., Poredoš, M., & Lep, Ž. (2023). Intergenerational Model of Financial Satisfaction and Parent-Child Financial Relationship. Journal of Social and Personal Relationships, 40(8), 2568–2591. https://doi.org/10.1177/02654075231153352
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2025-07-31
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Exploring the Impact of Family Financial Socialization on Household Money Management. (2025). Proceeding of International Conference on Economics, Technology, Management, Accounting, Education, and Social Science (ICETEA), 1, 821-831. https://conference.unita.ac.id/index.php/icetea/article/view/425
