Accounting Question

Topic3 DQ 1

Feb 22-24, 2024

Using the GCU Library, locate a journal article about budgeting. In the subject line of your post, include the name of the article that you read. Then, in your initial post, provide a link to the article and a summary followed by your reaction to the article. The summary should be approximately 250 words and the reaction should be approximately 150 words. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge. Do not choose an article that one of your classmates has already posted. To participate in follow-up discussion, choose one of the articles that a classmate has posted and provide your own reaction to it. Note: It may be challenging to find a relevant article if you do not use the library.

Dawn Hall

Feb 22, 2024, 9:41 AM

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Parental roles, financial literacy and budgeting behaviour: a survey during the COVID-19 pandemic

https://www-emerald-com.lopes.idm.oclc.org/insight/content/doi/10.1108/JARHE-03-2022-0086/full/html

Summary

The introduction of the study emphasizes the significance of budgeting in mitigating personal debt issues, particularly exacerbated since the 2008 global financial crisis. Despite its importance, budgeting is often neglected, especially among students, highlighting the need for interventions to promote financial literacy and budgeting skills. The COVID-19 pandemic further underscores the importance of budgeting in navigating financial challenges during crises.

Parental influence, particularly the role of the financial head in the family, is highlighted as a crucial factor shaping individuals’ financial literacy and behavior. The study posits that students may benefit from having parents who are primarily responsible for family financial decisions, as they learn not only money management skills but also the responsibility of decision-making on behalf of others.

The research focuses on Vietnam due to low financial literacy rates among students and the patriarchal family dynamic prevalent in Asian countries like Vietnam. Additionally, the study underscores the lack of attention given to college students in research on budgeting behavior.

The theoretical framework of the study draws upon Bandura’s Social Learning Theory, highlighting the importance of environmental factors, such as parental socialization, in shaping students’ behaviors. Hypotheses are formulated based on global and regional trends in financial literacy levels and the influence of parental financial head roles on students’ financial literacy and budgeting behavior.

The methodology section outlines the data collection process, which involved website-based surveys administered to college students in Vietnam during the COVID-19 pandemic. The study employs multiple regression techniques and structural equation modeling to analyze the relationships between parental financial head roles, students’ financial literacy, and budgeting behavior.

Measures for financial literacy, parental financial head roles, and budgeting behavior are described, along with control variables such as gender, academic majors, university types, years of study, and parental education levels. The data analysis includes correlation tests to assess relationships between variables.

Results indicate a positive association between parental financial head roles and students’ financial literacy, supporting the hypothesis. Moreover, higher financial literacy levels are linked to more frequent budgeting behavior. Gender gaps are observed, with male students demonstrating higher financial literacy levels but less frequent budgeting compared to female students.

Policy implications suggest the importance of parental involvement in promoting financial literacy and budgeting skills among students, particularly emphasizing the role of mothers as financial heads. The study also calls for interventions to address gender disparities in financial literacy and stresses the importance of financial literacy in navigating crises like the COVID-19 pandemic.

Reaction

The introduction of the study effectively highlights the critical importance of budgeting in addressing personal debt issues, especially in light of the challenges amplified by the 2008 global financial crisis and exacerbated by the ongoing COVID-19 pandemic. It rightly emphasizes the need for interventions to enhance financial literacy and budgeting skills, particularly among students who often overlook budgeting practices.

The focus on parental influence, specifically the role of the financial head in the family, adds a significant dimension to understanding individuals’ financial behaviors. The study’s argument that students may benefit from having parents who are primarily responsible for family financial decisions is compelling, as it suggests that such parental involvement not only fosters money management skills but also instills a sense of responsibility in decision-making.

The choice of Vietnam as the study’s setting is well-justified given the low financial literacy rates among students and the patriarchal family structure prevalent in the region. Additionally, the study’s acknowledgment of the lack of attention to college students in research on budgeting behavior underscores the need for targeted investigations into this demographic.

The integration of Bandura’s Social Learning Theory into the theoretical framework adds depth to the study by highlighting the environmental factors shaping students’ behaviors, including parental socialization. The formulation of hypotheses based on global and regional financial literacy trends and parental financial head roles provides a solid foundation for the research.

The methodology section outlines a rigorous data collection process and employs robust analytical techniques to examine the relationships between variables. The inclusion of control variables enhances the study’s validity, while correlation tests provide valuable insights into the associations among key factors.

The results offer compelling evidence supporting the positive association between parental financial head roles and students’ financial literacy, as well as the link between financial literacy levels and budgeting behavior. The observation of gender gaps underscores the need for targeted interventions to address disparities in financial literacy and promote equitable financial practices among male and female students.

Overall, the study’s findings have significant policy implications, emphasizing the importance of parental involvement in promoting financial literacy and budgeting skills among students. Furthermore, the study’s recognition of the role of financial literacy in navigating crises like the COVID-19 pandemic underscores the urgency of addressing financial education gaps in society.

References:

Phung, T. M. T. (2023). Parental Roles, Financial Literacy and Budgeting Behaviour: A Survey during the COVID-19 Pandemic. Journal of Applied Research in Higher Education, 15(3), 796–812.

https://doi-org.lopes.idm.oclc.org/10.1108/JARHE-03-2022-0086

REPLY

Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.