Young Adults’ Financial Socialization Processes as Influences of Conceptualization and Understanding of Financial Well-Being and Choice in Relationship Commitment

Abstract

The two studies presented in this dissertation provide an understanding of young adults’ perspective financial socialization processes and how the experiences influence a conceptualization of financial well-being and their choice of romantic relationship status (Study 1: N = 31, Study 2: N = 549). Study 1 has adapted Gudmunson and Danes’ (2011) Family Financial Socialization theory as a framework for organizing young adults’ (ages 20-23 years) personal reflections of how they conceptualized financial well-being. All interviews in Study 1 were coded and analyzed following Gilgun and colleagues’ (1992) pattern matching approach of analytical induction. Study findings suggested that parents and families have contributed to young adults’ financial well-being through financial socialization. Study 2 was guided by Deacon and Firebaugh’s (1988) Family Resource Management theory to examine how the combination of financial resources, financial management, and self-actualizing personal values influence young adults’ (ages 23-26 years) choice of relationship structure. Findings revealed that focusing on individual financial literacy and capability may not be enough to prepare young adults to be financially capable in a committed relationship. These studies suggest that familial socialization agents (e.g., parents, romantic partners) and social norms influenced young adults’ well-being (i.e., financial well-being) and their future life decisions (i.e., choice of committed relationship structure).