Financial Socialization

Abstract

Financial socialization is a method by which individuals gain and increase financial knowledge, attitudes, and behaviors that develop their financial skills (Fox et al. 2000). Financial socialization is called consumer socialization also, and it is primarily related to the knowledge, skill, and approaches of the children and young consumers who work with finance in the marketplaces (Ward 1974). “Socialization opportunity derives from individual, organizational, or institutional agents with whom children come into contact or maintain a relationship” (Fluellen 2013, p. 11). In a broader sense, financial socialization is the method by which financial knowledge, financial behavior, and financial values, norms, and attitudes are gained and developed by individuals that are necessary for their financial ability and well-being (Senevirathne et al. 2018). According to many, the financial socialization commences in early childhood and continues to the entire time of life of the individual. Thus, adults learned about financial behavior since their childhood by many agents.