Financial Socialization, Financial Identity, and Financial Well-Being Among University Students Taking a Consumer Economics Course

Abstract

Derived from Marcia’s (1966) identity statuses, we examine how financial identity statuses (achievement, moratorium, foreclosure, diffusion; Barber et al. (2011); Bosch et al. (2016); Sorgente et al. (2020)) relate to the preparation for taking on financial responsibilities, materialism, compulsive buying, responsible credit management, and financial anxiety and financial well-being among university students taking a Consumer Economics course. Key findings included: (1) Identity achievement was related positively to preparation for taking on financial responsibilities; (2) Identity moratorium was related positively to financial anxiety and related negatively to financial well-being; and (3) Identity diffusion was related negatively to preparation for taking on financial responsibilities and responsible credit management and related positively to materialism and compulsive buying. Findings suggest a combination of helping emerging adults become less financially dependent on parents and greater financial socialization may help them develop financial identity achievement.