Parental Financial Socialization, Financial Learning and Financial Well-being of Young Adults: A Serial Mediation Analysis via Financial Behavior and Financial Self-efficacy

1. * Rajwinder Kaur, Research Scholar, University School of Applied Management, Punjabi University, Patiala, Punjab, India (rajwinderkaur97600@gmail.com)

2. Gagandeep Kaur, Academic associate, Finance, Indian School of Business, Mohali, Punjab, India (Kaurgagann.01@gmail.com)

3. Manjit Singh, Professor, University School of Applied management, Punjabi University, Patiala, Punjab, India (smanjitt@gmail.com)

Grounded in socialization theory, this study investigates the impact of parental financial socialization, and formal and informal learning on financial attitudes. It also explores the role of financial self-efficacy and behavior as serial mediators between financial attitudes and well-being. Using data from 386 employees in north-western India, the study employs Partial Least Square (PLS)-structural equation modeling with SmartPLS. Results indicate positive relationships between parental financial communication, role modeling, classroom learning, and self-learning with financial attitude. Financial self-efficacy and behavior mediate the relationship between financial attitude and well-being. Implications for policymakers, academic institutions, and financial organizations include advocating for early financial education to aid sound financial decisions. The study highlights the crucial role of parental financial socialization in shaping financial attitudes, behaviors, and overall well-being, offering new insights to the literature.

Keywords

Parental financial socialization, Financial behavior, Financial well-being, Serial mediation, PLS-SEM

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