6533b7d3fe1ef96bd12602af

RESEARCH PRODUCT

Subjective financial situation and financial capability of young adults in Finland

Katariina Salmela-aroKatariina Salmela-aroMette RantaMette Ranta

subject

financial situationLongitudinal studySocial Psychology515 PsychologyMODELShenkilökohtainen talous050109 social psychologypitkittäistutkimusEducationTask (project management)Financial managementYoung AdultDevelopmental NeurosciencekyvykkyysDevelopmental and Educational Psychologytaloudenhoito0501 psychology and cognitive sciencesMeaning (existential)Young adultSubjective well-beingLife-span and Life-course Studiesta515nuoret aikuisetSelf-efficacyFinanceEMERGING ADULTHOODfinancial capabilitybusiness.industry05 social scienceslongitudinal studySELF-EFFICACYFRAMEWORKtaloudellinen asemasubjective well-beingADOLESCENCEta5141Well-being516 Educational scienceskoettu hyvinvointiPsychologybusinessTRANSITIONSocial Sciences (miscellaneous)050104 developmental & child psychology

description

A key developmental task in young adulthood is acquiring financial capability (Serido, Shim, & Tang, 2013), meaning competent financial management skills and the responsibilities that these involve. This study extends previous research on the theoretical model of the development of financial capability, including financial confidence (or financial self-efficacy) and financial behavior as factors contributing to subjective and financial well-being. It is part of the Finnish Educational Transitions Studies (FinEdu) longitudinal research project. Participants were 418 young adults aged 24–25 at Time 1 and 26–27 at Time 2. Path and mediation models and Structural Equation Modeling following a modified theoretical model of financial capability were estimated. The results support the theoretical model of financial capability among young adults in Finland. The study complements previous research by investigating the associations between subjective financial situation and financial capability and their respective mediation effects over time.

yearjournalcountryeditionlanguage
2018-11-01International Journal of Behavioral Development
https://doi.org/10.1177/0165025417745382