Work

The Role of Financial Identity Processes in Financial Behaviors and Financial Well-Being

Year: 2021

Type: article

Abstract: Financial identity formed during emerging adulthood is important for the regulation of youth financial behaviors, decisions, and long-term financial goals. This three-wave short-term longitudinal study investigates how youth develop a distinct manner of approaching and managing personal finances and reveals the structure and dynamics of financial identity development during emerging adulthood. Using the cross-lagged panel model analysis, it also investigates longitudinal reciprocal associations between financial identity processes, financial behaviors, and financial well-being of emerging adults. The sample consists of 533 Lithuanian higher education students (56.8% women; M age = 18.93, SD age = 0.71) who took part in three assessment waves. The findings support the use of the three-factor model of financial identity formation and show that financial identity formation is shaped by emerging adults’ financial situation and contribute to the formation of financial behaviors and financial well-being. Practical implications of study results are also discussed.

Source: Emerging Adulthood

DOI: 10.1177/21676968211016142

Authors: Rimantas Vosylis, Angela Sorgente, Margherita Lanz

Institutions: Mykolas Romeris University, Università Cattolica del Sacro Cuore

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,000

Funder: European Social Fund