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

Angela Sorgente, Margherita Lanz, Rimantas Vosylis

Research output: Contribution to journalArticle

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; Mage = 18.93, SDage = 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.
Original languageEnglish
Pages (from-to)N/A-N/A
JournalEmerging Adulthood
DOIs
Publication statusPublished - 2021

Keywords

  • emerging adulthood
  • financial capabilities
  • positive financial behaviors
  • financial well-being
  • financial identity

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