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Parent Financial Socialization Scale: Development and preliminary validationA theoretically grounded, validated measure of parent financial socialization is needed. This article describes the development and validation process of three new scales: the Parent Financial Modeling Scale (eight items), the Parent–Child Financial Discussion Scale (nine items), and the Experiential Learning of Finances Scale (three items). These may be treated as subscales of a multidimensional latent construct: the Parent Financial Socialization Scale (20 items). The three scales measure the three primary methods of family financial socialization. The scales are designed to be retrospective, with target participants being U.S. emerging adults (age 18–30). A rigorous development process was undertaken: an initial pool of items was generated, expert assessments were collected, cognitive interviews were conducted, and (following preliminary data collection) preliminary item reduction analysis and confirmatory factor analysis (CFA) were conducted. Final data were collected from a diverse (51.7% female, 47.6% male; 31.6% White, 22.0% Black, 19.8% Latinx, 14.6% Asian; 50.4% no parent with college degree, 47.4% parent with college degree) sample of 4,182 U.S. emerging adults. During validation, item reduction analysis, CFA, reliability tests, measurement invariance tests, and construct validity tests were conducted. The scales demonstrated acceptable reliability and validity, and invariance was established across sex, race, and parents’ education level. These scales are unique in their ability to capture nuance and will allow for comparisons across studies. They will enhance the quality of family financial socialization research, expand the questions that can be answered, and allow for the development of programming that is effective for a wide range of families.
Practice Makes Perfect: Experiential Learning as a Method for Financial SocializationMost financial socialization research focuses on two methods of learning: modeling and discussion. The purpose of this study is to qualitatively explore experiential learning as a third potential method of financial socialization used by parents. Specifically, we explored what children learned about finances through experiential learning and why parents used experiential learning as a financial socialization method. We used a multigenerational sample of emerging adults (ages 18-30 years) and their parents and grandparents (N = 115). Analyses revealed three core what themes (Working Hard, Managing Money, and Spending Wisely) and three core why themes (Learning Financial Skills, Acquiring Financial Values, and Becoming Financially Independent) related to experiential learning. These findings have implications for parents, researchers, and educators. In sum, we propose that experiential learning should be regarded as a principal method of financial socialization and should be considered in theory building, research, and pedagogy.