Review of Related Literature

This review of related literature (RRL) aims to explore the impact of parental involvement on the
financial decision-making skills of ABM students. Parental involvement can take many forms,
including direct financial education, modeling financial behavior, and providing guidance in
financial matters. Parents who actively engage in their children's financial education often impart
essential knowledge and values that contribute to more informed and responsible financial
decisions.
Studies show that students who receive substantial parental support in financial matters tend to
be more skilled in making informed financial decisions. This support typically starts early in life,
as financial concepts and responsible money management practices are taught within the family
environment. The financial behaviors and attitudes demonstrated by parents can significantly
shape a student's approach to handling money, a factor that becomes especially important during
their university years.
According to Tang, N. (2016), Intergenerational consistency in financial behavior between
parents and their children. Results from the generalized structural equation model indicate that
parents' financial behavior affects that of their children both directly and indirectly through
general self-control skill development. Furthermore, the influence of parents is moderated by
parent-child relationship.
Recent research indicates that parental involvement in financial education, whether through
direct teaching, modeling financial behaviors, or guiding financial decisions, plays a crucial role
in shaping students' financial literacy. According to Gudmunson and Danes (2011), students who
receive financial guidance from their parents tend to have higher levels of financial knowledge
and are better equipped to manage their finances effectively. This parental influence often begins
early in life, with parents serving as the primary source of financial education for their children
(Kim, Garman, & Sorhaindo, 2013).
Parents’ contribution to their children’s’ education has a consistent and positive effect on
academic achievement and on the self-concept (Chohan & Khan, 2010). Young adults’ housing
outcomes have changed considerably over time and are persistently stratified by parental class
and tenure in ways that vary by gender (Coulter, 2018). Consequently, parents must give support
and motivate their children to join activities related to academic (Dojillo, Balandra, Lebuna, &
Lopez, 2017). Both income and assets have consistent long-term associations with children’s
college entry (Huang, Guo, Kim, & Sherraden, 2009). Parents were inconsistent in providing
home environments that support their children’s development of internalized form of academic
motivation (Garn, Matthews, & Jolly, 2011).
The financial knowledge of university students is significantly shaped by parental influence.
Parents are often the first to teach and model money management skills, which strongly impact
how students handle budgeting, saving, investing, and debt during their university years. Studies
suggest that students who regularly receive financial guidance from their parents tend to be more
financially literate and better equipped to make informed financial decisions. This parental
guidance not only helps students navigate the financial demands of university life but also lays
the groundwork for their future financial security and success. In the study conducted by Ergün,
K. (2018), Relationship between financial knowledge and parental influence among university
students. Totally 169 students from Poland, Croatia, Greece, Turkey, Portugal, Slovakia,
Slovenia, Latvia, Lithuania and Hungary participated in this study. Students from Poland had the
highest financial knowledge score (5.7 out of 7). Result found that male students, students 26
years old or above, PhD students, those whose fathers’ had high school degree, those who
discussed with their mothers when making financial decision were more knowledgeable on
personal financial knowledge. Result showed that origin of country was significant for financial
knowledge since students from Poland was found to be more knowledgeable than students from
Greece, Hungary, Latvia, Lithuania, Turkey, Slovakia and Slovenia. It was concluded that
mothers had significant impact on financial knowledge of university students, but higher level of
parental education had no influence on financial knowledge of university students.
As noted by Cheang, D. M. &. M. (2017), Financial well-being can be elusive. When individuals
lack financial knowledge, socialization, and personal characteristics such as self-discipline and
thoroughness, they may not be able to make informed financial decisions later in life. Since
children’s savings have long lasting effects on college entrance and graduation rates, this paper
looked specifically at the relationship between parents’ savings values and whether they opened
a savings account for their child. Covariates including individual characteristics of the parents
and household characteristics were examined to see if they were significantly related to whether
or not a child’s savings account was opened. Implications of the findings with respect to early
intervention ork with parents are discussed as are recommendations for future research with low-
income families.
Furthermore, evidence suggests that students with higher levels of parental involvement are more
likely to develop confidence in managing money, budgeting, and making investment decisions
(Grohmann, Kouwenberg, & Menkhoff, 2015). These skills are vital for ABM students, who are
expected to navigate complex financial environments both academically and professionally. On
the other hand, a lack of parental involvement may lead to significant gaps in financial
knowledge, potentially impacting a student's ability to succeed in their future careers (Cude et
al., 2016).

This review of related literature highlights the significant impact of parental involvement on the
financial decision-making skills of Accountancy, Business, and Management (ABM) students.
Research consistently demonstrates that parental engagement, whether through direct financial
education, modeling behaviors, or providing guidance, plays a crucial role in shaping students'
financial literacy. Studies show that students who receive substantial parental support tend to
exhibit higher financial knowledge and better decision-making skills, which are crucial during
their university years. The influence of parents begins early, with financial concepts and
responsible practices being introduced in the family setting.

Recent findings emphasize that parental involvement fosters confidence in managing money,
budgeting, and making investment decisions, which are essential for academic and professional
success in the ABM field. Conversely, insufficient parental involvement can create gaps in
financial knowledge, potentially hindering future career success. Research by Tang (2016),
Gudmunson and Danes (2011), Kim, Garman, and Sorhaindo (2013), and others underscores the
importance of early and consistent parental support in developing effective financial skills.
Furthermore, studies like those by Ergün (2018) and Cheang (2017) reveal that the level of
parental education and involvement in financial matters significantly influences students'
financial knowledge and overall well-being.