Learning from Bitter Memories: Frequency and Resolution of Interparental Financial Conflicts, Financial Beliefs and Behaviors, and Well-Being among Hong Kong Young Adults

Drawing from family systems theory and family financial socialization theory, we examined associations among interparental financial conflicts (IPFC), financial beliefs and behaviors, and well-being for 312 Hong Kong young adults (aged 18–30 years old). The sample was relatively diverse in age, income level, and education level; the data were collected in March and April of 2022. IPFC consisted of frequency and three types of resolution strategies: negotiation, hostility, and triangulation. Financial beliefs and behaviors consisted of money vigilance and healthy money management. Well-being consisted of financial well-being and life satisfaction. Conducting structural equation modeling and calculating indirect effects, we identified two key findings. First, IPFC strategies (but not IPFC frequency ) spill over into offspring’s financial beliefs and well-being. Second, young adults’ financial beliefs mediated associations between IPFC strategies and young adults’ well-being. Collectively, our study extended family systems theory and family financial socialization theory in demonstrating that (a) family interactions and relationships—including IPFC— are a vital component of the financial socialization process, and (b) these processes are associated with young adults’ financial beliefs, and in turn, well-being.