Family Processes and Adolescents' Financial Behaviors

Abstract

This article examined the contribution of family processes (parental warmth, parental financial monitoring, and parent-child interactions about money) to explain cognitive and behavioral aspects of adolescents' financial behaviors. Data came from the 2002/2003 Child Development Supplement to the Panel Study of Income Dynamics, a national sample of adolescent age 12-18 and their families (N = 1,471). Results indicated that higher levels of parent communication about child donations were positively associated with both children's saving for future schooling and their likelihood of donating to charities. Higher levels of parental warmth were associated with saving for future schooling. Giving an allowance was negatively related to child financial anxiety. Implications for researcher and policy makers have been discussed. © 2011 Springer Science+Business Media, LLC.