How Social Class Shapes Adolescent Financial Socialization: Understanding Differences in the Transition to Adulthood

Gaining financial independence is considered a key component of the transition to adulthood. Yet we know little about how adolescents learn to navigate the financial world or how social class shapes this process. Drawing on interviews with 52 parents and adolescents in the United States, this study explored how children learn about finances from their parents. Middle-class parents in the sample were more proactive in teaching their children about finances. Working-class parents, however, often felt unequipped to teach financial skills and were more likely to shelter their children from financial matters. Ultimately, middle-class adolescents felt more at ease when navigating financial institutions, while working-class adolescents expressed greater uncertainty and were left to grapple with imperfect and sometimes contradictory information about finances.