- Title
- The role of family structure and financial socialisation in influencing students' financial capabilities
- Creator
- Antoni, Xolile Lucas
- Subject
- Finance, Personal
- Subject
- Families -- Economic aspects Finance -- Social aspects
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Doctoral
- Type
- DPhil
- Identifier
- http://hdl.handle.net/10948/21505
- Identifier
- vital:29531
- Description
- This research used three theories to develop a theoretical framework that investigated the role of family structures and financial socialisation in influencing students’ levels of financial knowledge, attitudes, self-efficacy and behaviour (financial capabilities). It also examined the mediating role of family financial situation in the relationship between the family structure and the mechanisms of financial socialisation. The theories of consumer socialisation, family financial socialisation and family structure model, guided the development of a proposed theoretical framework and development of five major hypotheses. To answer the research questions of the study and test the hypotheses, this study followed a quantitative survey research design. Undergraduate students in the Faculty of Business and Economic Sciences completed 350 questionnaires. Using exploratory factor analyses results, the theoretical framework was updated, and statistical relationships tested. Simple regression analysis results showed that students who were born or raised in an intact family structure reported more financial socialisation in terms of the mechanisms of financial socialisation than students who were born or raised in non-intact family structures. Simple regression results showed that intact family structures had positive significant relationships with four of the six components of the mechanisms of financial socialisation. Furthermore, intact family structures had negative significant relationships with two components of the mechanisms of financial socialisation. Multiple regression results showed four components of the mechanisms of financial socialisation (teaching and monitoring, reinforcement of financial behaviour, modelling of financial behaviour and financial conflict) had positive significant relationships with financial capabilities. The components of financial socialisation agents (peers and media) had positive significant relationships with three components of financial capabilities (financial behaviour, money is respect and freedom, and money is good). In addition, family financial situation partially mediated the relationship between intact family structure and three components of the mechanisms of financial socialisation, namely, parental teaching and monitoring, modelling of financial behaviour and parental relationship. Furthermore, family financial situation perfectly mediated the relationship between intact family structures and one component of the mechanisms of financial socialisation (reinforcement of financial behaviour). Three components of the mechanisms of financial socialisation (parental teaching and monitoring, reinforcement of financial behaviour and modelling of financial behaviour) also perfectly mediated the relationship between intact family structure and one component of financial capabilities, namely, financial behaviour. Similarly, one component of the mechanisms of financial socialisation (parental teaching and monitoring) also perfectly mediated the relationship between intact family structure and one component of financial capabilities (financial self-efficacy). These results assisted in the development of a new empirically tested model to investigate the role of family structure and financial socialisation in influencing students’ financial capabilities. This study showed that family structures was an important variable that should not be excluded in financial planning as it influenced all the components of the mechanisms of financial socialisation. Financial socialisation agents also had an influence on financial capabilities and, thus, the parental financial socialisation should not be investigated in isolation. It was also important to identify the mechanisms of financial socialisation as seen in this study, as the components of the mechanisms had different influences on students’ financial capabilities. For this study, parental teaching and monitoring, reinforcement of financial behaviour and modelling of financial behaviour proved to be the most important components of the mechanisms of financial socialisation, which ultimately influenced students’ financial capabilities. This study has proved that family structures and financial socialisation influence the financial capabilities of students. To improve financial capabilities of students, parents should increase their level of modelling of financial behaviour and decrease the level of secrecy about money in the household. Parents should also instill positive financial attitudes in students, monitor their financial behaviour, and reinforce positive financial behaviour. This study contributes to the much-needed body of knowledge in financial planning by showing through empirical results that family structure has an influence on the components of the factor mechanisms of financial socialisation, and the factor financial capabilities. As little information exists to explain these relationships, this study makes a valuable contribution to new knowledge in this area.
- Format
- xxi, 336 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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