RECONNOITERING AND MAPPING AN EFFECT OF FINANCIAL SOCIALISATION ON FINANCIAL LITERACY: A CRITICAL LITERATURE REVIEW

Abstract

The financial industry is complicated, with a wide range of goods, services, and ideas that people may find challenging to understand independently without the right training and direction. Many consumers lack the knowledge to comprehend financial language, investment possibilities, and debt management measures. The foundation of financial literacy is laid by financial socialisation. Parental money management education imparts the fundamental knowledge and abilities required to successfully manage one's own finances. Through a literature review, this study investigated the impact of parental financial socialisation on financial literacy globally. This study adopted an exploratory research design where an empirical review of the literature was undertaken. The results showed that generally parental financial socialisation has an influence on financial literacy globally, despite some few studies that contradicted this view. The current study makes a unique contribution to the body of knowledge as is among the first to investigate the influence of parental financial socialisation on financial literacy of young adults globally. This study recommends that parents be keenly aware that their actions and behaviours around money and their own financial decision-making will likely leave a lasting impression on their children.

Keywords

• financial education
• parents
• financial knowledge
• financial behaviour
• financial teaching
• financial discussions