PSYCHOLOGY OF YOUTH FINANCIAL BEHAVIOR: THE ROLE OF SELF-ESTEEM AND SOCIAL EXPECTATIONS AND CROSS-CULTURAL ASPECTS
DOI:
https://doi.org/10.32782/psy-visnyk/2025.2.17Keywords:
financial behavior, self-esteem, social expectations, youth, emotional regulation, consumer psychology, social norms, cross-cultural factorsAbstract
The article presents a theoretical analysis of the psychological factors that shape young people’s financial behavior, with a particular focus on the role of self-esteem as an internal resource of personal regulation and social expectations as an external source of normative pressure. The study also includes an analysis of cross-cultural factors affecting youth financial behavior. Based on a review of contemporary scientific sources, it is argued that financial behavior among youth is formed through the constant interplay of individual, social, and cultural influences. In particular, it is demonstrated that low self-esteem often correlates with heightened sensitivity to social influence, a desire for recognition through conspicuous consumption, and a tendency toward impulsive financial decisions. Conversely, high self-esteem provides a basis for critical evaluation of consumer impulses, emotional regulation, and the adoption of balanced and strategically grounded financial decisions. Social expectations, transmitted through family guidance, media content, and cultural models of success, significantly influence how young people perceive financial achievement and which consumer strategies they choose. Through mechanisms of social comparison and identification, young individuals often adjust their behavior to conditional standards that may not align with their actual resources or values. The article emphasizes that research on the psychological determinants of financial behavior must account not only for individual-personal and social factors but also for the specific cultural context in which the personality develops and functions. The importance of integrating psychological support into financial education programs aimed at fostering financial literacy, emotional resilience, and self-reflection skills is also underscored. The article substantiates the need for further interdisciplinary research to deepen the understanding of the psychological nature of young people’s financial decisions in the face of social pressure and informational oversaturation.
References
Achtziger, A., Hubert, M., Kenning, P., Raab, G., & Reisch, L. (2015). Debt out of control: The links between self-control, compulsive buying, and real debts. Journal of economic psychology, 49, 141–149.
Bian, Q., & Forsythe, S. (2012). Purchase intention for luxury brands: A cross-cultural comparison. Journal of Business Research, 65(10), 1443–1451.
Bilal, M., Zhang, Y., Cai, S., Akram, U., & Lu, N. T. M. (2023). Unlocking luxury purchase intentions in China. Journal of Retailing and Consumer Services, 71, 104048.
Biljanovska, N., & Palligkinis, S. (2018). Control thyself: Self-control failure and household wealth. Journal of Banking & Finance, 92, 280–294.
Braun, O. L., & Wicklund, R. A. (1989). Psychological antecedents of conspicuous consumption. Journal of Economic psychology, 10(2), 161–187.
Brown, M., Henchoz, C., & Spycher, T. (2018). Culture and financial literacy: Evidence from a within-country language border. Journal of Economic Behavior & Organization, 150, 62-85. https://doi.org/10.1016/j.jebo.2018.03.011
Brown, S., & Taylor, K. (2014). Household finances and the ‘Big Five’personality traits. Journal of Economic Psychology, 45, 197–212.
Deci, E. L., & Ryan, R. M. (2000). The «What» and «Why» of Goal Pursuits: Human Needs and the Self-Determination of Behavior. Psychological Inquiry, 11(4), 227–268.
Dittmar, H., Long, K., & Bond, R. (2007). When a better self is only a button click away: Associations between materialistic values, emotional and identity–related buying motives, and compulsive buying tendency online. Journal of social and clinical psychology, 26(3), 334–361.
Engelberg, E., & Sjöberg, L. (2006). Money attitudes and emotional intelligence. Journal of Applied Social Psychology, 36(8), 2027–2047.
Festinger, L. (1954). A Theory of Social Comparison Processes. Human Relations, 7(2), 117–140.
Gärling, T., Kirchler, E., Lewis, A., & van Raaij, F. (2009). Psychology, Financial Decision Making, and Financial Crises. Psychological Science in the Public Interest, 10(1), 1–47. https://doi.org/10.1177/1529100610378437
Grohmann, A., Klühs, T., & Menkhoff, L. (2018). Does financial literacy improve financial inclusion? Cross country evidence. World Development, 111, 84–96. https://doi.org/10.1016/j.worlddev.2018.06.020
Hanley, A., & Wilhelm, M. S. (1992). Compulsive buying: An exploration into self-esteem and money attitudes. Journal of economic Psychology, 13(1), 5–18.
Jorgensen, B. L., & Savla, J. (2010). Financial literacy of young adults: The importance of parental socialization. Family relations, 59(4), 465–478.
Jorgensen, B. L., Allsop, D. B., Runyan, S. D., Wheeler, B. E., Evans, D. A., & Marks, L. D. (2019). Forming financial vision: How parents prepare young adults for financial success. Journal of Family and Economic Issues, 40, 553–563.
Kajonius, P. J., & Carlander, A. (2017). Who gets ahead in life? Personality traits and childhood background in economic success. Journal of Economic Psychology, 59, 164–170.
Leary, M. R., Tambor, E. S., Terdal, S. K., & Downs, D. L. (1995). Self-esteem as an interpersonal monitor: The sociometer hypothesis. Journal of Personality and Social Psychology, 68(3), 518–530.
Mandel, N., Petrova, P. K., & Cialdini, R. (2006). Images of Success and the Preference for Luxury Brands. Journal of Consumer Psychology, 16(1), 57–69.
Mudzingiri, C., Muteba Mwamba, J. W., & Keyser, J. N. (2018). Financial behavior, confidence, risk preferences and financial literacy of university students. Cogent Economics & Finance, 6(1), 1512366.
Popovych, I., Shevchenko, A., Galvez, L. M., & Klenina, K. (2021). Research of the relationship between social desirability and value orientations of adolescents. Revista Notas Históricas y Geográficas, 26(1), 241–268.
Puri, M., & Robinson, D. T. (2007). Optimism and economic choice. Journal of financial economics, 86(1), 71–99.
Sherif, M., & Sherif, C. W. (Eds.). (2008). Problems of youth: Transition to adulthood in a changing world. Transaction Publishers.
Strömbäck, C., Lind, T., Skagerlund, K., Västfjäll, D., & Tinghög, G. (2017). Does self-control predict financial behavior and financial well-being?. Journal of behavioral and experimental finance, 14, 30-38. https://doi.org/10.1016/j.jbef.2017.04.002
Tang, N., & Baker, A. (2016). Self-esteem, financial knowledge and financial behavior. Journal of economic psychology, 54, 164–176.
Tang, N., Baker, A., & Peter, P. C. (2015). Investigating the disconnect between financial knowledge and behavior: The role of parental influence and psychological characteristics in responsible financial behaviors among young adults. Journal of Consumer Affairs, 49(2), 376–406.
Triandis, H. C. (1989). The self and social behavior in differing cultural contexts. Psychological review, 96(3), 506.
Vitt, L. A. (2004). Consumers’ financial decisions and the psychology of values. Journal of Financial Services Professionals
Wachjuni, W., Komarudin, M., Maulana, Y., Azhari, A., & Astriani, R. (2021). Analysis of Factors Affecting Financial Behavior. In Proceedings of the 2nd Universitas Kuningan International Conference on System, Engineering, and Technology, UNISET (Vol. 2).
Wigfield, A., & Eccles, J. S. (2000). Expectancy–value theory of achievement motivation. Contemporary educational psychology, 25(1), 68–81.
