Parental financial socialization, financial behaviors, and well-being among Hong Kong young adults amid COVID-19

Objective: We investigated how parental financial socialization was related to Hong Kong young adults' financial behaviors and well-being amid COVID-19. Background: We extended existing literature by including two types of financial behaviors: healthy money management (e.g., spending within budget) and financial enabling (i.e., overgiving and sharing financial resources). We focused on well-being in financial and nonfinancial domains (i.e., financial well-being and hopelessness, respectively). We also considered moderating roles of gender, family socioeconomic status (SES), and income changes during COVID-19. Methods: We collected cross-sectional survey data from 604 Hong Kong young adults and conducted structural equation modeling. Results: Parental financial socialization, on the one hand, promoted well-being via healthier money management. On the other hand, parental financial socialization increased financial enabling and reduced well-being. The examined associations varied across gender, family SES, and income changes during COVID-19. Conclusions: Parental financial socialization was a “double-edged” sword, and the examined associations varied for young adults with diverse experiences across gender, family SES, and income changes during COVID-19. Implications: Efforts are needed to strengthen desired consequences and alleviate undesired ones of parental financial socialization. The different needs and experiences of young adults deserve attention.