The difference in financial literacy among business owners may affect how financial decisions are made, especially when comparing between women and men. Using role congruity theory as the theoretical framework, the objective of this study is to examine how financial literacy, composed of financial knowledge and financial confidence, differs in influence in the decision-making process of financial decisions between self-employed women and self-employed men. Based on data from the 2014 Canadian Financial Capability Survey (CFCS), results show that self-employed women and self-employed men have equivalent financial knowledge. In addition, while self-employed women have less financial confidence than self-employed men, self-employed men are more overconfident than self-employed women, both groups are, in general equally likely to make risky (bad) decisions. This suggests that financial confidence plays an important role as financial knowledge does in the decision-making process.

Doctor of Philosophy / School of Family Studies and Human Services / Sonya L. Lutter / Stuart J. Heckman / College is a time when many young adults are beginning to make financial decisions on their own. The financial behaviors they engage in can have effects on their academic success, life satisfaction, relationship quality, physical and mental well-being, and financial well-being. This dissertation examined the direct and indirect relationships between financial socialization, financial knowledge, financial self-efficacy, and financial behaviors in college students using data from the 2014 National Student Financial Wellness Study (NSFWS). The sample consisted of 12,598 college students from 52 college institutions. Structural Equation Modeling (SEM) was conducted with the tested model guided by Gudmunson and Danes’ (2014) Family Financial Socialization (FFS) conceptual framework. Results revealed financial socialization has a direct influence on financial knowledge, financial self-efficacy, and financial behaviors. An indirect association between financial socialization and financial behaviors through its association with financial self-efficacy was also found. Alternative models discovered neither parental financial socialization nor formal financial education alone impacted financial knowledge, but when combined, their influence became significant, suggesting a possible interaction effect between formal financial education and parental financial socialization. Objective financial knowledge was not found to influence financial self-efficacy or financial behaviors in college students. Results showed financial self-efficacy to be the strongest predictor of students engaging in positive financial behaviors. A one standard deviation increase in financial self-efficacy was associated with a 90% increase in the standard deviation of financial behavior. This study provides support and implications for the FFS conceptual framework. Financial counselors, advisors, and therapists can use these findings to educate their clients on the importance of financial socialization of their children. Furthermore, results reinforce the need for mandatory formal financial education and infer the importance of parents and educators working together to cultivate financial knowledge in children.

abstract: Personal finances are an essential part of adulthood, yet we find that many Americans have low financial literacy (Financial Industry Regulatory Authority Investor Education Foundation, 2016). This phenomenon is especially true for young adults (18-25 years old) (Lusardi, 2019). Lusardi, Mitchell, and Curto (2009) found that fewer than one-third of young adults possess basic financial knowledge. The present study examined whether financial self-efficacy and financial hardship were moderators between financial literacy and financial anxiety among a young adult sample (18-25 years old; Arnett, 2000). The current study utilized moderated moderation analyses to explore the associations between financial literacy, financial anxiety (i.e., the concern and worry about finances), financial self-efficacy, and financial hardship for young adults( N = 549, 71.6% female, Mage = 20.49). Based on survey data from the Financial and Social Stress Study (Tran & Mintert, n.d.), moderated moderation results show (a) an inverse association between financial literacy and financial anxiety (direct effects) and (b) financial self-efficacy and financial hardship moderate this relationship. Specifically, for young adults experiencing high financial hardship with high financial self-efficacy, there was a strong inverse association between financial literacy and financial anxiety. This study contributes to our knowledge of the vital role of financial literacy and its association with financial anxiety for young adults. Further, these findings highlight financial self-efficacy as a potential factor for mental health providers to consider when working with young adults experiencing high financial hardship. / Dissertation/Thesis / Masters Thesis Counseling 2019

Emerging adults find themselves in a time of great transition, especially related to finances and relationships. This study used a sample of 1,950 U.S. emerging adults currently in romantic relationships to investigate the role that parent financial socialization plays in the financial communication for emerging adult couples. This study also investigated if financial self-efficacy, in part, explained this association. Parent financial socialization was found to be positively associated with couple financial communication. In addition, financial self-efficacy was found to partially mediate this relationship. Individuals whose parents taught them effectively regarding finances had higher levels of self-efficacy regarding finances and had higher quality of financial communication in their relationships. Clinicians can use this information to better support couples' struggles with financial communication. Helping couples develop financial skills and knowledge can help them improve their communication as a couple.

Doctor of Philosophy / School of Family Studies and Human Services / Kristy L. Pederson-Archuleta / Martin Seay / This dissertation employed a psychological framework to investigate the saving behavior of older pre-retirees through three essays using data from the Health and Retirement Study (HRS). Understanding the connection between psychological characteristics and saving behavior is critical as this population attempts to bridge the retirement saving gap. Of these characteristics, financial self-efficacy beliefs (FSE) are theoretically vital to saving behavior. With the FSE beliefs of older adults weak and vulnerable to decline, more research is needed to understand how FSE beliefs affect saving behavior and how FSE beliefs can be supported. Essay one investigated the psychological characteristics associated with FSE beliefs according to the Meta-Theoretic Model of Motivation and Personality (3M). Using a sample of 2,070 pre-retirees aged 50 to 70, essay one revealed that FSE beliefs can be supported through the frequent experience of positive affect, reduced negative affect, a stronger perception of mastery, and a higher task orientation, holding all else constant. Essay two investigated the relationship between FSE beliefs and saving behavior (i.e., change in net worth from 2008 to 2012) through the Social Cognitive Theory of Self-Regulation. Using a sample of 844 pre-retirees aged 50 to 70, results revealed that FSE beliefs are significantly and positively related to saving behavior, after controlling for the financial ability and motivation to save. Essay three employed a structural equation model to investigate an integrated psychological approach to saving behavior based upon the 3M. Using a sample of 1,370 pre-retired and partially retired adults aged 50 to 70, essay three revealed that FSE beliefs facilitated the connection between elemental traits (i.e., openness, conscientiousness, extroversion, agreeableness, and neuroticism), compound traits (i.e., positive affect, negative affect, mastery, and task orientation), and saving behavior. Overall, significant evidence was generated supporting a psychological approach to the saving behavior of older pre-retirees. Financial and mental health professionals can utilize this framework to provide holistic retirement saving advice that acknowledges the psychological roots of behavior. Moreover, results established empirical support for the role FSE beliefs play in executing saving behavior. Lastly, results supported the importance of domain specific measurement for self-efficacy beliefs in future research.

Doctor of Philosophy / Department of Human Ecology-Personal Financial Planning / D. Elizabeth Kiss / Maurice M. MacDonald / The purpose of this study was to investigate the determinants that explain and predict an individual’s propensity to perform responsible financial actions and make on-time mortgage payments. The research was guided by Social Cognitive Theory (SCT) (Bandura, 1986) and explored personal factors, environmental influences, and attributes of behavior as co-factors within a combined causal framework. Data for this study came from the publicly available, 2009, 2012, and 2015 National Financial Capability Study (NFCS) datasets. These datasets were selected for the specific questions, timeframe, and richness of the financial information provided by the respondents. Responses for each survey were weighted to be representative of Census distributions according to the American Community Survey (FINRA Investor Education Foundation, 2017). The data are weighted to be representative of each state based on age, gender, ethnicity, and education. The two variables of interest were the responsible financial actions index and mortgage payment history. To isolate the determinants of these two variables more accurately, this research adopted a multi-step approach to the analytical procedure. The analyses began with the construction of the responsible financial actions index – unifying the most fundamental responsible financial actions recommended by financial professionals into a single value. Once confirmed as a valid and reliable measure, the responsible financial actions index was explored empirically as both a dependent variable and a target variable. Further analyses involved the application of the SCT Triadic Model to develop OLS and Multinomial Logistic regression models. Utilizing a series of regression models, this study explored empirically the hypothesized relationships among variables categorized as personal factors, environmental influences, attributes of behavior, and on-time mortgage payment history. When exploring variables to predict the responsible financial actions index, the OLS regression models provided consistent findings when analyzing data from the 2009, 2012, and 2015 surveys. As predicted by the SCT Triadic Model, the following personal factors, age, subjective and objective financial knowledge, financial self-efficacy, and financial risk tolerance were significant across all three survey years. The following environmental influences were significant: income, educational attainment, and marital status. To estimate the odds of paying a mortgage on-time, a series of Multinomial Logistic regression analyses were conducted. When evaluating these results, key findings were identified across all three years of data in two models. Model 1, never late vs. late once, and Model 2, never late vs. late more than once. In Model 1, for all three years, self-efficacy was found to be predictive of on-time mortgage payment history. In Model 2, for all three years, both financial self-efficacy and the financial actions index were found to be predictive of on-time mortgage payment history. These findings contribute to the body of empirical literature related to consumer economics and personal financial planning providing insight and understanding for how financial outcomes can be improved through basic responsible financial actions. This has important implications for financial professionals, counselors, and educators given the applicable value for the responsible financial actions index. For example, these results should encourage educators to work towards identifying new pedagogical approaches for improving financial self-efficacy among students.

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