Family Financial Socialization and Financial Capabilities of the U.S. Military Service Members: Do Demographics Matter?

The family financial socialization (FFS) theory details associations among demographic characteristics, financial socialization, and financial capabilities. Given that the transitions and challenges unique to military life have implications for financial capabilities, this study utilizes the FFS theory to examine cross-sectional data from a sample of service members (N = 401). We conducted a path analysis investigating the associations among demographic characteristics (race, ethnicity, sex, and age), FFS (socialization received from one's family about money management while growing up), and indicators of financial capabilities (knowledge, skills, attitudes, and behaviors). We also examined differences by race, ethnicity, and sex. African American/Black, Hispanic, and older service members reported less FFS than White, non-Hispanic, and younger service members. FFS was positively associated with all four indicators of financial capabilities. The strength of associations between FFS and financial capabilities did not differ by race, ethnicity, or sex, suggesting that the financial socialization received from one's family of origin is important for financial capabilities in adulthood regardless of race, ethnicity, or sex. The findings support and extend the FFS theory and have implications for practice. [ABSTRACT FROM AUTHOR]