The impact of family relationships and financial education on financial risk tolerance

Authors

  • Kenneth Ryack Department of Accountancy, Williams College of Business, Xavier University

DOI:

https://doi.org/10.61190/fsr.v20i3.4702

Keywords:

Parent-child differ­ences, Marital relationship, Family relationships, Financial education, Risk tolerance

Abstract

This study explores how family relationships and financial education impact financial risk tolerance using a sample of college freshmen and their parents. No significant relationship is found between the financial risk tolerance of parents and their children. However, husbands are significantly more risk tolerant than their wives. There is also a strong correlation between the risk tolerance of the spouses, after controlling for gender, income, and education. In addition, college students who had some financial education in high school are found to be more risk tolerant, especially when they played a stock market game as part of a course.

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Published

2011-09-30

How to Cite

Ryack, K. (2011). The impact of family relationships and financial education on financial risk tolerance. Financial Services Review, 20(3), 181–193. https://doi.org/10.61190/fsr.v20i3.4702

Issue

Vol. 20 No. 3 (2011): FSR Fall 2011

Section

New Original Submission

License

Copyright (c) 2011 Academy of Financial Services

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