The Dynamics of Family Financial Socialization: Impact on Financial Self-efficacy and Financial Behavior

Purpose: The objectives of the study include examining the role of family financial socialization (FFS) in shaping young adults' financial self-efficacy (FSE), understanding how FSE contributes to financial behavior (FB), and exploring the mediating role of FSE in the relationship between FFS and FB of young adults.Design/Methodology: Using a quantitative technique, data were collected from 395 university students in Punjab, India. The study utilized partial least squares structural equation modeling (PLS-SEM) to scrutinize and decipher the intricate interconnections among the variables.Findings: The results support the hypotheses, demonstrating the significant influence of FFS on FSE and FB, as well as the mediating role of FSE.Practical/Social Implications: Educational institutions and policymakers can integrate these findings into financial education programs to boost financial literacy and self-efficacy among young adults. Additionally, policymakers can encourage parents to actively engage in open financial discussions with their children.Originality/Value: This study broadens the scope of existing research by investigating FFS through multiple dimensions and focusing on university students in Punjab, a previously underexplored demographic. It also uniquely examines the mediating role of FSE in the relationship between FFS and FB.