Financial
Counseling and Planning
The Journal of the
Association for Financial
Counseling and
Planning Education
VolumeĀ 15(2),
2004
Financial Prudence and
Next Generation Financial Strain
Jeffery R. Hibbert, Ivan F. Beutler, and Todd M. Martin
- The purpose of this
study is to examine the influence parents have in reducing the
financial strain their children experience as early adults to the
extent that financial prudence was modeled in the commonplace routines
of home and family life during the child’s growing-up years. Using data
from students from two large U.S. universities, financial prudence was
examined for its direct effect on the reduction of financial strain and
also for two possible indirect effects through debt avoidance and
credit card misuse. Financial prudence was found to decrease financial
strain directly and also indireclty through debt avoidance and credit
card misuse behaviors.
Keywords: Children and money, Credit, Economic
stress, Family finance