Hibbert, 2004(2), Financial Prudence and Next Generation Financial Strain

Financial
Counseling and Planning

The Journal of the
Association for Financial
Counseling and
Planning Education


Volume  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