International Journal of Economics and Financial Issues ISSN: 2146-4138 available at http: www.econjournals.com International Journal of Economics and Financial Issues, 2023, 13(3), 84-91. International Journal of Economics and Financial Issues | Vol 13 • Issue 3 • 2023 84 The Impact of Parental Financial Socialisation on Financial Decision-Making of Young Black African Adults in Rural and Low-Income Area in South Africa #1 Adam Ndou* Department of Finance, Risk Management and Banking, University of South Africa, 34 Preller Street, Muckleneuk, Pretoria, South Africa. *Email: endouaa@unisa.ac.za Received: 09 February 2023 Accepted: 02 June 2023 DOI: https://doi.org/10.32479/ijef.14191 ABSTRACT This study investigated the impact of parental fnancial socialisation on fnancial decision-making of young black African adults in rural and low- income area in South Africa. Data was collected through self-administered questionnaire from 423 young black African adults in Fetakgomo Tubatse and Intsika Yethu local municipalities, low-income and rural areas in South Africa. Multiple regression analysis was used to test the relationship between parental fnancial behaviour, parental fnancial monitoring, parental fnancial discussion, parental fnancial communication, and parental fnancial teaching with fnancial decision-making. The results indicated that parental fnancial communication had a signifcant positive relationship with fnancial decision-making. While parental fnancial behaviour, parental fnancial monitoring, parental fnancial discussion, and parental fnancial teaching had no positive relationship with fnancial decision-making. Therefore, the overall results indicated that parental fnancial socialisation has no impact on fnancial decision-making of young black African adults in rural and low-income area in South Africa. This study provided recommendations to parents, young black African adults, fnancial educators, fnancial services institutions, and fnancial counsellors. Keywords: Young Black African Adults, Parents, Financial Decision-Making, Parental Financial Socialisation JEL Classifcations: D14, G51, G53 # This study is based on the PhD’s thesis entitled “The infuence of parental fnancial socialisation on fnancial literacy of young black African adults in rural and low-income area in South Africa” of the corresponding author. 1. INTRODUCTION Parental fnancial socialisation impact on fnancial decision- making of young black African adults has never been important than now. This is coupled by the fact that children learn the foundation and basics of life at home before other formal learning, such early childhood development, high schools, and tertiary education. Parents are at the forefront of early childhood fnancial socialisation and the importance to determine the infuence of parents on fnancial decision-making of young adults cannot be overemphasized (Lep et al., 2022). South Africa is experiencing high debt levels among young adults with a high number of young adults applying for debt review programme ofered by debt counsellors (Sallie, 2015). Black African consumers have low levels of knowledge regarding issues such as bad debts and are more likely to experience problems in fnancial decision-making than other racial groups (Antoni, 2018). Additionally, black African consumers in rural and low-income area are more likely to be exploited by informal lenders commonly referred to a loan sharks or mashonisa due to minimal access to fnancial products, credit facilities from fnancial institution and poor fnancial decisions (FinMark Trust, 2019). Thus, young black African adults in low-income and rural areas are fnancial vulnerable due to increasingly high debt levels, This Journal is licensed under a Creative Commons Attribution 4.0 International License