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An empowerment model of youth financial behavior

Faculty Advisor

Date

2015

Keywords

Western Canada, economics, consumption, youth, self-efficacy, structural equation modeling

Abstract (summary)

The current study examines the antecedents of youth financial behavior. By grounding the conceptual framework on empowerment theory, we argue that in addition to financial knowledge other elements such as intrapersonal (e.g., locus of control and motivation) and interactional elements (e.g., parental financial teaching and behavior) also impact youth financial behavior. To test the hypotheses, structural equation modeling is used on a data set of youth from Western Canada. The results indicate that external locus of control has the highest total effect on youth financial behavior followed by parental influence and motivation. Findings are validated by performing several robustness checks and multigroup analysis. Organizations trying to influence youth financial behavior should broaden the understanding of empowerment to include personal worldview, motivation, as well as social surroundings.

Publication Information

Angulo-Ruiz, Fernando, and Albena Pergelova (2015) “An empowerment model of youth financial behavior,” Journal of Consumer Affairs, 49 (3), 550-575. http://doi.org/10.1111/joca.12086

Notes

Item Type

Article

Language

English

Rights

All Rights Reserved