For married couples, money is a common source of stress and conflict that can seriously affect the quality of relationships. But finances can help matter in relationships long before the wedding bells ring, according to new research. Researchers wanted to see how financial socialization from three different sources affects life outcomes and well-being in young adults. The three sources they looked at were the young adults' parents, the young adults' partners, and the young adults themselves. Unsurprisingly, young adults' financial behavior had the greatest impact on their well-being, according to the findings. In second place were the financial behavior of their romantic partners, while financial expectations of parents – who undoubtedly have the first financial influence in a child's life – seem to have the least impact.
The new study is based on answers from the third wave of data collection from 504 participants, mean age 24, who identified themselves as being in a committed romantic relationship. Most of those young adults — 61.5 percent — were unmarried and did not live with their partners. Thirty percent were unmarried but lived together and 18.5 percent lived together and married.
Researchers found that the person's own financial behavior was associated with all measured outcomes, with the exception of relationship satisfaction and commitment. Individual perceptions of their romantic partners' financial behavior were associated with their relationship satisfaction and commitment, as well as their overall well-being and life satisfaction. Financial socialization of parents influenced only one outcome:the performance of young adults on objective financial knowledge questions.
