TITLE:
Racial Differences in Financial Socialization: The Role of Financial Experiences
AUTHORS:
Zibei Chen, Kenneth White, Christopher Sneed, Sangmi Kim
KEYWORDS:
Financial Socialization, Race and Ethnicity, Financial Experience, Racialized Financial Markets, Economic Environment
JOURNAL NAME:
Sociology Mind,
Vol.15 No.5,
October
29,
2025
ABSTRACT: Financial socialization has been largely considered as a homogenous process across racial groups and a phenomenon isolated from economic environments. This study explores the role of childhood financial experiences in shaping financial socialization across racial groups in the context of economic environments. Using data from the 2016 National Financial Well-Being Survey, we investigate how Blacks and Hispanics each differs from Whites on financial socialization and whether certain childhood financial experiences contribute to such differences. In contrast with prior research, we found small to no racial difference in financial socialization, and a regular allowance was associated with higher levels of financial socialization among Blacks and Hispanics compared to Whites. These findings suggest that childhood financial experiences affect the extent to which financial socialization occurs within households and these experiences may have a differential impact across racial groups.