Financial Socialization and Behavior of Young Adults: Objective and Subjective Financial Knowledge as Mediators

College students in the U.S. have faced severe financial challenges, throughout the pandemic and remain a highly researched demographic for investigating financial behaviors and decision-making (Robb & Chy, 2023). From a societal context, college-aged adults have sought financial guidance from their families and peers to learn about financial matters to make informed financial decisions. Using financial socialization theory and the theory of household consumption behavior, we examined the antecedents of financial behavior and the mediating role of financial knowledge on financial socialization and financial behavior. Students also face different financial socialization in their upbringings about financial matters that explain their financial behaviors (Antoni et al., 2019). Family and social factors such as income, financial attitudes, and financial behaviors may influence college students' attitudes, knowledge, and behaviors about financial matters (Serido et al., 2015). Using a cross-sectional survey in a public, state institution from the Texas Panhandle in the U.S., we analyzed data from 207 participants using a Qualtrics survey shortly after the COVID-19 pandemic. Results provide evidence that financial socialization and subjective financial knowledge are related to financial behavior. Findings supported the mediating effect of objective and subjective financial knowledge on the relationship between financial socialization and financial behavior. Additionally, household spending had a moderator effect on the relationship between objective knowledge and financial behavior. The current study also provides implications for education and financial stakeholders working with college students.