Flourishing and Floundering Financially in Emerging Adulthood

Abstract Emerging adults throughout the world are struggling financially, yet the financial domain is a key aspect of the transition to adulthood. This is an evidence-based, application-centered handbook that offers insight to researchers, educators, clinicians, and parents on how to help emerging adults flourish rather than flounder financially—and gives emerging adults themselves tools to improve their own financial situation (see the Introduction). In Part I, we discuss theoretical models of financial literacy (Chapter 1) and explore how each element of financial literacy operates in emerging adulthood: financial awareness and knowledge (Chapter 2), financial skills (Chapter 3), financial attitudes (Chapter 4), financial behavior (Chapter 5), financial decisions (Chapter 6), financial well-being (Chapter 7), and financial stress and anxiety (Chapter 8). In Part II, we dive into the unique financial circumstances experienced as emerging adults strive to achieve markers of adulthood such as completing education (Chapter 9), securing employment (Chapter 10), achieving financial independence (Chapter 11), exploring financial identity (Chapter 12), navigating consumption and borrowing (Chapter 13), and finding a stable partner (Chapter 14). In Part III, we recognize the diverse backgrounds and circumstances that profoundly influence emerging adults’ financial literacy, including socioeconomic vulnerability (Chapter 15), gender (Chapter 16), and culture and race (Chapter 17). In Part IV, we discuss how to improve emerging adults’ financial literacy: through parent financial socialization (Chapter 18) and financial education (Chapter 19). We conclude (Chapter 20) by summarizing the research on financial literacy during emerging adulthood and providing direction for future research, education, and practice.