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A developmental model of financial capability: A framework for promoting a successful transition to adulthood

  • Joyce Serido
  • , Soyeon Shim
  • , Chuanyi Tang

Research output: Contribution to journalArticlepeer-review

Abstract

This study proposes a developmental model of financial capability to understand the process by which young adults acquire the financial knowledge and behaviors needed to manage full-time adult social roles and responsibilities. The model integrates financial knowledge, financial self-beliefs, financial behavior, and well-being into a single financial decision-making process. With two-time longitudinal survey data from college students (N = 1,511; aged 18-23 years at Wave 1 and 21-26 years at Wave 2), the findings provide support for a pattern of co-occurring change: changing knowledge about personal finances associated with changing self-beliefs about finances; changing self-beliefs associated with changing financial behaviors; and changing financial behaviors ultimately associated with changes in financial and overall well-being. We discuss the findings in the context of facilitating a positive transition to adulthood during widespread economic uncertainty.

Original languageEnglish (US)
Pages (from-to)287-297
Number of pages11
JournalInternational Journal of Behavioral Development
Volume37
Issue number4
DOIs
StatePublished - Jul 2013

Bibliographical note

Funding Information:
Funding for this research was provided by The National Endowment for Financial Education (NEFE), the Citi Foundation and the Take Charge America Institute at the University of Arizona.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Keywords

  • American university students
  • decision-making
  • independent self
  • individual development
  • longitudinal study
  • mechanisms of change

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