Sustainable Debt Behaviour and Well-Being of Young Adults: The Role of Parental Financial Socialisation Process

Abstract

Literature shows that parental financial socialisation plays an important role in attaining financial literacy as well as in shaping sustainable financial behaviours and that both translate into increased well-being indicators and financial security on micro- and macroeconomic levels. However, debt literacy and debt behaviour seem to be unique. Very little is known about the childhood financial socialisation process through which adults’ sustainable debt behaviour is shaped and how debt behaviour may affect well-being. This study tests a hierarchical model of childhood financial socialisation consisting of five levels: the anticipatory parental socialisation, and later life financial learning outcomes (particularly, debt literacy levels), financial attitudes, debt behaviour, and well-being. Using data collected from a purposive sample of young adult Poles (N = 600) during the period from 10 to 13 November 2018 and employing structural equation modelling, we have found evidence confirming the hierarchical relationship of literacy–attitude–behaviour. Our data do not support, however, either the hypothesised positive relationship between parental socialisation and objectively measured debt literacy or the assumed relationships between debt behaviour and well-being indicators. We posit that country-specific factors related to generational differences entailed by system-wide transition and the specificity of debt behaviour, respectively, are key for explaining these empirical deviations from the assumed conceptual framework. Finally, we found no significant differences between the models estimated separately for maternally conditioned and paternally conditioned respondents.

Improving Debt Literacy by 2/3 Through Four Simple Infographics Requires Numeracy and Not Focusing on Negatives of Debt

“…Debt literacy (variable B), defined after Lusardi and Tufano, as “the ability to make simple decisions regarding debt, applying basic knowledge about interest compounding to everyday financial choices,” (Lusardi and Tufano, 2015 , p. 333) was measured with the Debt Literacy Scale comprising three questions; another question (Cwynar et al, 2019 ) was added to strengthen understanding of the process logic in debt education:…”

Bibliometric Analysis: Debt Literacy for Reducing Over-Debt and Poverty Alleviation

“…Kondisi ini timbul karena minimnya pemahaman tentang literasi keuangan (Klapper & Lusardi, 2020). Literasi utang dan perilaku hutang harus diajarkan sejak masih anak-anak, karena beberapa temuan membuktikan bahwa perilaku hutang dan literasi utang akan mempengaruhi kesejahteraan (Andrzej Cwynar, Cwynar, Baryla-Matejczuk, & Betancort, 2019). Temuan riset (Andrzej Cwynar, Cwynar, & Wais, 2019) menunjukkan bahwa tingkat pendidikan dan gender berpengaruh posisitif terhadap tingkat literasi utang di Polandia.…”

“…Pengetahuan tentang utang ini tidak hanya menyangkut pendidikan formal tapi juga pendidikan kelurga. Hasil temuan lain terkait pendidikan keluarga (Andrzej Cwynar, Cwynar, Baryla-Matejczuk, et al, 2019) menegaskan bahwa hierarki proses dalam sosialisasi pengetahuan keuangan dari orang tua kepada anaknya, khususnya masalah pengetahuan utang akan sangat mempengaruhi kesejahteraan generasi berikutnya. Pendidikan tentang literasi utang juga sangat diperlukan bagi masyarakat yang sudah dewasa karena hasil temuan (Andrzej Cwynar, Cwynar, Patena, & Sibanda, 2020) menunjukkan bahwa perilaku utang yang terlalu percaya diri mengabaikan beragam hal yang terkait dengan utang, misalnya biaya, manfaat penggunaan utang dan cenderung berlebih lebihan.…”

Üniversite Öğrencilerinin Aile Finansal Sosyalleşme Düzeylerinin Para Tutumlarına Etkisi

“…Family Financial Socialization Variable: With a view to measuring of university students' levels of family financial socialization, a new questionnaire has been developed by means of obtaining statements about family financial socialization from various sources: (Kowalczyk and Chudzian, 2015;Cwynar, Cwynar, Baryla-Matejczuk and Betancort, 2019;Lee and Mortimer 2009;Kim and Chatterjee, 2013;Glenn, 2018). After the verification of factor analysis, the questionnaire was composed of two family financial socialization dimensions which were financial experience & learning (FEL) and money management skills (MMS).…”