How Does Financial Life Shape Emerging Adulthood? Short-Term Longitudinal Associations Between Perceived Features of Emerging Adulthood, Financial Behaviors, and Financial Well-Being

Abstract

Becoming independent from parental financial support and developing financial capabilities are important life tasks in emerging adulthood (EA). However, research on how the accomplishment of these tasks contributes to perceptions of EA features is rare. This study investigates how functioning in the financial domain shapes perceptions of EA features during the early years of EA. Participants in this short-term longitudinal study were 533 emerging adults (57.2% women; M age = 18.94, SD age = .73, range 18–21 years) freshly enrolled into a set of programs at three higher education institutions. Results show that (a) financial well-being promotes more desirable (perceived) EA features, while financial difficulties tend to be related to more negative ones; (b) change in economic dependence is primarily driven by financial well-being; (c) (perceived) features of EA also contribute to how one functions in financial life; and (d) parental socioeconomic status plays at least some role in these matters.

The Role of Financial Identity Processes in Financial Behaviors and Financial Well-Being

“…The data for this study come from a larger research project that examined the development of financial capabilities among Lithuanian emerging adults, as well as the antecedents of this process and its outcomes (Vosylis & Klimstra, 2020). In total, 533 emerging adults (57.2% women; M age = 18.94, SD age = .73, range 18–21 years), freshly enrolled in a diverse set of programs at three higher education institutions, took part in this three-wave short-term panel study, which covered the first academic year in college or university.…”

“If She’s Sad, I’m Sad Too” Emotional Closeness Between French Grandparents and Emerging Adult Grandchildren

“…While 60% of young French adults aged 18 to 24 say they have no problem in their relationship with their parents, the relational difficulties of the remainder is usually associated with lack of financial support (INSEE, 2014). Indeed, gaining financial independence from parents is a major issue in the development of an adult identity (Vosylis & Klimstra, 2020), especially as it is associated with a better recognition of children as adults by their parents (Padilla-Walker et al, 2012). Given that this period is marked by many challenges and by changes in the parent–child relationship, a question may be posed: how do parents influence the grandparent-emerging adult–grandchild relationship?…”

Analysing the behavioural, psychological, and demographic determinants of financial decision making of household investors

“…As a research topic, the nexus of FAUT as a driver of FDM has remained under-explored [ 74 ]. Vosylis and Klimstra [ 16 ] perceive FAUT as a quality which develops in stages and regard it as the degree of responsibility one shoulders for decisions related to managing daily spending, purchasing and investment choices. The concept has been backed by the goal framing theory [ 40 ] which purports that realization of one's goals (i.e., FDM here) inevitably calls for the enrichment on one's resources (i.e., FAUT here).…”

“…Adding on to the skills mentioned, digital financial literacy (DFL) is assumed to have rationalized financial decisions [ 14 ] with personal/behavioural characteristics such as impulsivity and materialistic attitude impacting FDM as well [ 15 ]. Nevertheless, Vosylis and Klimstra [ 16 ] perceive financial autonomy, a feeling of self-empowerment and confidence in taking independent financial decisions as a vital FDM determinant whereas Gonzalez-Igual et al [ 17 ] emphasise the relevance of education, age, and gender in influencing FDM. Additionally, prudent financial behaviour in the form of consistent expense evaluations, maintenance of contingency reserves [ 18 ], budget preparations, low impulsivity, and cost controls [ 19 ] also lead to judicious FDM.…”