How Does Financial Life Shape Emerging Adulthood? Short-Term Longitudinal Associations Between Perceived Features of Emerging Adulthood, Financial Behaviors, and Financial Well-Being

Abstract

Becoming independent from parental financial support and developing financial capabilities are important life tasks in emerging adulthood (EA). However, research on how the accomplishment of these tasks contributes to perceptions of EA features is rare. This study investigates how functioning in the financial domain shapes perceptions of EA features during the early years of EA. Participants in this short-term longitudinal study were 533 emerging adults (57.2% women; Mage = 18.94, SDage = .73, range 18–21 years) freshly enrolled into a set of programs at three higher education institutions. Results show that (a) financial well-being promotes more desirable (perceived) EA features, while financial difficulties tend to be related to more negative ones; (b) change in economic dependence is primarily driven by financial well-being; (c) (perceived) features of EA also contribute to how one functions in financial life; and (d) parental socioeconomic status plays at least some role in these matters.