Overview: This study systematically assesses parents-peer communication patterns. Findings suggest that the three classes were identified, Non-empowering, Teaching-focused, Empowering-focused. Presenters will explain how different communication styles on finance will impact individuals' financial well-being and behavior.Proposal text: Background and
Purpose: While finance-related research has contributed to a better understanding of various factors that may affect individuals' level of financial capabilities and behavior, little is known how the different patterns of parents-peer communication may influence on developing a long-term behavior (Curran et al., 2018; Hanson & Olson, 2018). This is problematic, as shaping a substantial financial capability is a life-long process, lacking in positive parent-peer influences may increase inappropriate financial behavior (Birkenmaier & Fu, 2020; Mottola, 2014). This study investigates different types of parent-peer communication types and the extent to which types their financial well-being. This cross-sectional, non-experimental research aimed to meet two goals: 1) Identify the most effective types of communication patterns with parents-peers on finance matters; 2) Determine how empowering- and educating-focused affects individuals' level of financial capabilities.
Methods: Data was used from the 2017 National Financial Capability Study to examine communication patter and financial behavior (CFPB, 2017). Latent Class Analysis (LCA) was applied to identify the communication pattern. Subsequently, Analysis of Covariance (ANCOVA) was used to determine how such communication influences the individuals' financial behaviors and well-being.
Results: Three typologies of parents-peer communication emerged: Non-empowering (26.3%), Teaching-focused (45.8%), Empowering-focused (28%). The chi-square test of independence suggested, teaching-focused group were more likely to have better resistance to reckless behavior, such as act without thinking, χ² (6, N = 6337) = 46.40, p < .05; good at resisting temptation χ² (6, N = 6341) = 105.55, p < .05; work toward long-term goal, χ² (6, N = 6342) = 326.68, p < .05. ANCOVA were used to examine the possible interactions in the impact of communication pattern and financial well-being, when controlling for common covariates (e.g., age, gender, ethnicity, parents’ education level). Overall, there were significant differences in individuals’ financial well-being and skills by communication types, F (2, 6369) = 82.74, p
