Exploring the role of help‐seeking behavior, family financial socialization, and capability on financial well‐being

• Published date: 01 December 2024
• Author: Yu Zhang,Jia Qi,Swarn Chatterjee
• Date: 01 December 2024
• DOI: http://doi.org/10.1111/fare.13089

RESEARCH

Exploring the role of help-seeking behavior, family

financial socialization, and capability on

financial well-being

Yu Zhang

1

| Jia Qi

2

| Swarn Chatterjee

2

1

Department of Personal Financial Planning,

Kansas State University, Manhattan, KS

2

Department of Financial Planning, Housing

and Consumer Economics, University of

Georgia, Athens, GA

Correspondence

Yu Zhang, Department of Personal Financial

Planning, Kansas State University, 343O

Justin Hall, 1324 Lovers Ln., Manhattan, KS

66506.

Email: Yuliazhang@ksu.edu

Abstract

Objective: This study develops a conceptual framework for

examining the associations between family financial social-

ization and financial capability on individuals’financial

well-being and explores the mediating role of financial

help-seeking when determining financial well-being.

Background: Individuals’family financial socialization

and financial capability are associated with their financial

well-being. This study extends the literature by examining

whether seeking financial help can indirectly mediate the

association between these factors and individuals’financial

well-being.

Method: This study used the 2016 National Financial

Well-Being Survey data set, consisting of 6,394 adults, and

employed structural equation modeling with full informa-

tion maximum likelihood and bootstrap estimation for

empirical analyses.

Results: Financial knowledge and perceived financial

capability were positive contributors to financial well-

being. Family financial socialization showed positive

direct and mixed indirect effects on help-seeking behav-

iors. When mediated by help-seeking behaviors, family

financial socialization had significantly positive total and

indirect associations and a negative direct association with

financial well-being.

Conclusion: This study found that financial help-seeking

behavior was a significant factor in the indirect association

between family financial socialization, financial knowl-

edge, and well-being.

Implications:Providing access to professional advice and

encouraging family finance discussions can enhance peo-

ple’s financial well-being.

Received: 20 October 2023 Revised: 28 June 2024 Accepted: 30 July 2024

DOI: 10.1111/fare.13089

© 2024 National Council on Family Relations.

3054 Family Relations. 2024;73:3054–3072.wileyonlinelibrary.com/journal/fare

KEYWORDS

family financial socialization, financial capability, financial well-being,

help-seeking behaviors, social cognitive theory

INTRODUCTION

Attaining higher levels of financial well-being is critical, as it may facilitate progress toward

reaching one’s life goals and promote financial satisfaction (Consumer Financial Protection

Bureau [CFPB], 2015). As such, there has been a growing research interest in measuring and

identifying the key factors associated with financial well-being, revealing significant associations

with various human capital, behavioral, and sociodemographic factors (Anvari-Clark &

Ansong, 2022; Zhang & Chatterjee, 2023). Although previous literature has found differences

in the associations between individuals’cognitive abilities and their decisions to seek a specific

source of financial advice (e.g., Fan & Lim, 2022), whether receiving financial advice from a

specific source is associated with family financial well-being has not been fully explored in past

literature. Drawing from the guidance of social cognitive theory and recognizing the dynamics

among environmental factors, cognitive factors, and behavioral factors, this study aims to con-

struct a clear and theoretically grounded framework for comprehending the factors associated

with financial well-being when mediated by financial help-seeking behavior.

Conceptual framework

The theoretical framework developed for this study is based on two primary research lines:

social cognitive theory (SCT) and the personal financial wellness (PFW) framework. The SCT

models that emerged from the works of Lent (2004) and Lent et al. (2005) explain the direct

and indirect roles of environmental and cognitive factors in the association between goal attain-

ment behavior, such as seeking financial advice from others to help set one’s financial goals

(Irving et al., 2011), and financial well-being. The environmental element in the SCT framework

that we expect to be associated with financial well-being is family financial socialization. Shim

et al. (2010) defined financial socialization as either observed or subconscious learning of finan-

cial skills and attitudes. In this sense, family financial socialization is an environmental factor

that explains the process of learning and developing values by interacting with others or model-

ing other family members’behaviors on financial matters (LeBaron-Black et al., 2023). Family

financial socialization in childhood has been associated directly with individuals’financial well-

being and indirectly through their association with the increased likelihood of seeking financi al

advice from others (Fan et al., 2022; LeBaron-Black et al., 2023). Both objective financial

knowledge and perceived financial capability are cognitive factors within the SCT framework,

which measure the respondent’s actual level of financial knowledge, their decision-making abil-

ity, and their access to managing their finances (Xiao et al., 2022; Zhang & Fan, 2022). It is

anticipated that through observational learning from family financial socialization, individuals

can enhance their financial knowledge and attitudes.

The PFW framework, developed by Joo (2008), also provides a conceptual foundation for

constructing the framework utilized in this study. PFW is defined as a framework for assessing

the objective measures of financial health and the perceived and desired status of a person’s

financial wellness. In this framework, subjective perception is determined by an individual’s

financial attitudes and objective financial knowledge. We expect that both perceived financial

capability and objective financial knowledge will play significant roles in enhancing individuals’

financial well-being.

HELP-SEEKING BEHAVIORS AND FINANCIAL WELL-BEING 3055