ABSTRACT Using the family financial socialization theory (FFST), this paper reports on a study that aimed to investigate the relationship between family financial socialization and the financial capabilities, behaviors, and well‐being of individuals across different generational groups. Using a nationally representative sample of 6180 US respondents from the 2016 National Financial Well‐Being Survey (NFWBS), structural equation modeling (SEM) was employed to test the direct and indirect associations between financial socialization and financial well‐being. Additionally, the mediating roles of financial capability and financial behavior were also examined. A multi‐group SEM was conducted for four generational groups (i.e., Pre‐Boomers, Boomers, Gen X, and Millennials) to examine the heterogeneous effects of generational status on the associations between family financial socialization and financial well‐being. The results underscore significant positive associations between financial socialization, financial capability, financial behavior, and financial well‐being. Specifically, financial capability and financial behavior were found to significantly mediate the relationship between financial socialization and financial well‐being. The multi‐group SEM by generation revealed significant differences in the direct and indirect associations among financial socialization, financial capability, financial behavior, and financial well‐being. Financial planners can utilize findings from this study to gain a deeper understanding of their clients' financial behaviors, engage in more informed discussions, and tailor recommendations that are unique to the generational experiences of their clients.
Chutani et al. (Mon,) studied this question.