Financial socialization typically conceptualizes influences on children’s financial well-being through modeling, instruction through parent-child discussion, and experiential learning. However, helicopter parenting, which is marked by age-inappropriate parental involvement in emerging adults’ decision-making, does not fit into this model. The present study sought to examine the relationship between financial helicopter parenting and perceived financial well-being and financial self-confidence in 203 college students. Results indicate that financial helicopter parenting is related to having less confidence in financial abilities, engaging in financial strain behaviors, and reporting lower levels of financial well-being, though there was no relationship with student loan or consumer debt. This unique pattern of results suggests a need for modified interventions to improve financial well-being and behavior.
Recent evidence shows that there has been an increase in the number of parents who are financially supporting their adult children. The concern is whether this is affecting parents’ retirement planning negatively. This study uses data from the 2021 National Financial Capability Study (NFCS) to examine how financially supporting young adult children is associated with parents’ retirement planning. The results suggest that individuals who financially support their young adults are less likely to have retirement accounts and are more likely to worry about running out of money in retirement compared to those who do not have financially dependent children.
The antecedents of financial well-being have been explored in various methods to understand how to improve individuals' and families’ overall well-being. For instance, the role of family financial socialization is of particular importance since the family unit is the primary socializing agent for most individuals until they are young adults (Danes & Yang, 2014; Gudmunson & Danes, 2011; LeBaron-Black et al., 2022). Central factors to financial well-being typically include reviewing a person’s objective and subjective financial factors associated with financial wellness. Additionally, a person’s financial circumstances (e.g., having an emergency fund), mental health, lower levels of financial stress), and perception of their financial situation are all common factors associated with improved financial well-being (Asebedo & Wilmarth, 2017; Archuleta et al., 2013; Park et al., 2017). Given the multifaceted nature of financial well-being, researchers must take a holistic approach when examining this construct. The purpose of this study is to empirically examine the influence of family financial socialization on individuals’ financial well-being across generations. These differences underscore how financial stability improves with age. This study is important because previous studies have shown age, or generation, to be an important predictor of financial well-being.
The study investigates the factors that shape subjective well-being (SWB), focusing on how financial satisfaction, job satisfaction, relationship happiness, physical health, and community engagement contribute to overall life satisfaction. Unlike traditional economic measures like GDP, SWB offers a comprehensive view of consumer quality of life, providing insights into personal fulfillment and resilience, especially during economic and health crises. Using data from the General Social Survey from 2016 to 2022, this study analyzes the impact of financial satisfaction and other well-being dimensions on SWB through ordered logit regression models with robustness checks. Findings show that relationship happiness, financial satisfaction, and physical health are critical to well-being, with relationship happiness emerging as the strongest predictor (OR=28.25, AME=.4018). This research highlights the need for policies and programs that address financial and non-financial aspects of life to enhance consumer holistic well-being. Recommendations include financial literacy programs, supportive workplace environments, and accessible healthcare, which together can foster resilience and improve subjective well-being across diverse populations. This study contributes to an understanding of consumer well-being, supporting actionable strategies for policymakers, educators, and financial practitioners.
Making optimal investment decisions is complex due to the inherent uncertainty and the influence of individual risk preferences. This study investigates the impact of major health events on financial decision-making, focusing on risk-taking behavior and investment horizons. Utilizing data from the SHARE project, which provides a comprehensive longitudinal view of individuals aged 50 and above in Europe, we examine how health shocks such as heart attacks, strokes, and cancer diagnoses alter financial behaviors. Our analysis employs propensity score matching and mediation analysis to understand these dynamics. Results indicate that health shocks significantly deteriorate household financial conditions, reducing income, wealth, and employment probability. However, contrary to expectations, these shocks do not substantially alter risk appetite or investment planning horizons, suggesting a limited mediating role of decreased life expectancy in financial decision-making.
This study investigated the association between personal debt and psychological well-being among older adults aged 51 and above, with a specific focus on unsecured debt. The research explored the role of health literacy in this relationship. Data from the 2018 and 2020 waves of the Health and Retirement Study were utilized with a sample size of 10,687, involving respondents who completed both a core survey and a psychosocial leave-behind questionnaire. The analysis revealed that 35.9% of respondents had unsecured debt, and the presence of such debt was significantly associated with lower psychological well-being. Health literacy was a significant mediator between the deleterious role of unsecured debt in psychological well-being. Given that medical debt constitutes a sizable proportion of unsecured debt for older individuals, possessing greater knowledge of one's health situation appears to mitigate the psychological distress associated with debt. Interventions aimed at enhancing the ability of older adults to access and comprehend health-related information and services may serve as a protective measure against the negative psychological consequences of grappling with unsecured debt.
Presidential elections can be unsettling for individuals as they consider changes that may not reflect their social and fiscal values and confront the specter that they could live the next four years under misaligned policies. At the same time, the stock market and the economy have historically fared well regardless of the political party in control or whether the election resulted in a change in leadership. With the political atmosphere in the United States becoming increasingly charged, the opportunity for panic is elevated, most notably for individuals who lean heavier into their political identity. Financial mistakes made today due to heightened emotional states can have a lifelong deleterious impact. The present study explores whether changes in economic and market expectations after an election were driven by political conviction and whether partisanship manifested in different actions to one’s portfolio. We also contemplate the election’s partisanship effects on financial well-being and financial self-efficacy, both of which have been shown to impact decision-making. We conclude this paper with practical techniques to help individuals look beyond the current political environment and refocus on long-term planning.
This study investigates the equity and resilience impacts of Farm Service Agency (FSA) loan programs on socially disadvantaged farmers, focusing on disparities in loan terms such as obligated loan amounts and interest rates across diverse demographic groups. Using borrower data from 2004 to 2014, it evaluates lending patterns for primary loan types (Operating and Farm Ownership Loans) and ad hoc loan types (Disaster Assistance and Emergency Loans). By applying a Multivariate Multiple Linear Regression (MMLR) model, the research assesses the influence of financial performance indicators and demographic factors, including race, gender, and marital status, on loan conditions. The findings reveal significant differences in loan terms, with minority and female borrowers often experiencing lower loan amounts and higher interest rates compared to White and male borrowers. These disparities persist despite FSA’s mandate to ensure equitable access to credit for disadvantaged groups. The results indicate that while FSA programs have made strides in improving access, challenges remain in achieving full equity. Policy recommendations include enhancing credit scoring models to reduce bias and providing targeted support programs to improve financial resilience for minority farmers. This study contributes to understanding the effectiveness of FSA loans in promoting equity and resilience and suggests pathways for further policy reform.
