Young adulthood is a crucial period for identity development, and an unclear sense of identity has been associated with deleterious psychological and social outcomes (Kroger & Marcia, 2011). Young adults have also identified self-sufficiency, including financial independence, as an essential aspect associated with attaining adulthood (Arnett, 2000). However, current realities such as global economic uncertainty and a shift toward greater personal responsibility for financial security may threaten the successful attainment of these essential goals (Furstenberg, Rumbaut, & Settersten, 2005). Hence, I explored identity formation (Erikson, 1950, 1968) in the domain of finance. Four socialization factors (perceived parental SES, parental financial communication, formal financial education, and high school work experience) and three beliefs (attitudes, subjective norms, and perceived behavioral control) were used to predict financial identity (achievement, foreclosure, moratorium, and diffusion) in a sample of college students (N = 2,098) who were surveyed at two time points approximately 2.5 years apart. Four models were tested using structural equation modeling (SEM). First, using crossectional data, I tested the extent to which socialization factors and financial beliefs predicted financial identity. I found support for 79% of the hypothesized associations between the variables. Second, using crossectional data, I examined the degree to which financial beliefs mediated the association between socialization factors and financial identity. Findings indicated that financial beliefs partially mediated the association between parental financial communication and financial identity. Third, using longitudinal data, Time 1 (T1) socialization factors and T1 beliefs were used to predict Time 2 (T2) financial identity. As expected, T1 financial identity was the most robust predictor of T2 financial identity. After controlling for T1 financial identity, T1 variables were most predictive of changes in T2 foreclosure: Increases in foreclosure were predicted by perceived parental SES, parental communication, formal education, and subjective norms. Finally, T1 financial beliefs were allowed to mediate the association between T1 socialization factors and T2 financial identity. I found no evidence of mediation using longitudinal data. Findings from this study suggest that identity formation within the financial domain is consistent with identity formation in other recognized identity domains.

This research examined 50 financial education programs within the state of Florida. The purpose of the research was to survey financial education program providers to see how they are evolving to meet the sociological, psychological and behavioral factors that affect individual’s financial decision making. In constructing the survey I referenced articles, journals and publications regarding how certain factors can affect an individual and their ability to apply financial education to their daily life. This review of previous research showed that tailored education, to determine a participant’s means, ability and goals, is the best way to help participants achieve financial independence. In this literature review no specific details were found on how programs are evolving or how existing program offerings are filling the need for tailored financial education. This topic is important because financial decisions that people make will not only affect current generations but also future generations. I contacted 50 agencies with a 27 question survey regarding their basic organizational structure, funding, program details, success determinants, primary program goals and focus, and marketing strategies. 36% of those contacted, or 18 organizations, responded. All responses were compiled and compared to determine relationships among program structures, offerings, and goals. The primary findings were that most organizations opened after 2000, have budgets under $100,000 funded primarily by two main sources, and their main goals are to provide basic knowledge and education to help participants improve financial decisions. In addition, most programs conduct a pre-post survey or get participant feedback to evaluate programs and use the number of participants at meetings as their main success factor. The majority of programs do not collect financial information, however they provide one-on-one counseling to focus on tailoring education to 501+ participants per year. Recommendations for future research are to increase the number of respondents, look deeper into funding requirements, the program lifecycle, marketing strategies employed and their effectiveness, and what specific financial education topics programs are addressing. This will add to existing research by providing a broader view of the financial education landscape and help programs to evolve to meet the need for tailored education.