The financial behaviors of adolescents, especially those from economically disadvantaged families, is critical and has long-term effects. This study tested and compared two conceptual models that connect a family’s material hardship to adolescents’ financial behaviors by using a convenience sample of adolescents in Hong Kong. The main purpose of this study was to offer effective entry points for parents and family practitioners to implement interventions for improving the financial behaviors of adolescents, particularly those from economically disadvantaged families. The model of financial socialization demonstrates that material hardship was associated with financial behaviors through financial self-beliefs, direct parental instruction, and the adoption of parental financial role models. The model of general poverty links material hardship to financial behaviors through parental investment, parental stress, financial literacy, and financial self-beliefs. Of the two models, the model of parental financial socialization offers more effective entry points for family practitioners to implement interventions.
Bibliographical noteThis study was funded by grants from the Research Grant Council Strategic Public Policy Research (HKIEd 7001-SPPR-11).
- Financial behaviors
- financial literacy
- material hardship
- Parental financial socialization
- parental poverty