Parental transfer of financial knowledge and later credit outcomes among low- and moderate-income homeowners

It is well established that acquiring financial skills during childhood is linked with better savings in adulthood. Little is known, however, about the relationship between parental teaching of money management early in life and children's financial outcomes in adulthood. This is particularly t...

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Bibliographic Details
Published in:Children and youth services review 2011, Vol.33 (1), p.78-85
Main Authors: Grinstein-Weiss, Michal, Spader, Jonathan, Yeo, Yeong Hun, Taylor, Andréa, Books Freeze, Elizabeth
Format: Article
Language:English
Subjects:
Adulthood
Asset building
Childhood
Children
Credit
Credit card debt
Credit cards
Credit scores
Credit scores Credit card debt Savings Parental teaching Financial skills Asset building Low-income homeowners Financial education
Educational Attainment
Financial education
Financial skills
Home Ownership
Households
Knowledge
Low-income homeowners
Management
Parental teaching
Parents
Savings
Teaching
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Summary:It is well established that acquiring financial skills during childhood is linked with better savings in adulthood. Little is known, however, about the relationship between parental teaching of money management early in life and children's financial outcomes in adulthood. This is particularly true for low- and moderate-income (LMI) households. Using data from Community Advantage Program survey data for 2,389 LMI homeowners, we find that adults who report receiving high levels of money-management teaching in childhood from their parents are associated with higher credit scores and lower credit card debt in adulthood. We also find that the level of parental financial teaching influences the relationship between children's later educational attainment and credit scores. These findings suggest implications for initiatives promoting financial capability for parents and children.
ISSN:0190-7409
1873-7765
DOI:10.1016/j.childyouth.2010.08.015