Exploring Processes of Financial Decision-Making Among Emerging Adults: Evidence From a Qualitative Study

Emerging adults face an increasingly complicated financial climate, which necessitates that they possess dynamic financial decision-making skills. With an increased understanding of emerging adults’ financial decision-making processes and what influences their financial decisions, parents, financial counselors, and other individuals can better prepare emerging adults to be financially independent. This qualitative study explored how emerging adults make financial decisions by asking questions about their habits and preferences as well as responding to two hypothetical, financial-related dilemma scenarios. Participants engaged in interactive learning sessions where they were able to share their responses in a group setting. Findings indicated that participants consulted media and their parents the most when they needed advice or additional information to make financial decisions. Based on this study’s findings, it is recommended that financial literacy programs involve emerging adults’ families and leverage the influence of media when teaching financial knowledge and skills.