You’ve heard of finding your identity in college—figuring out your values, goals, and even your sense of self. But have you ever thought about your financial identity? It’s more than just your bank account balance or budgeting skills. Financial identity is about how you see yourself in relation to money—how confident, capable, and responsible you feel when it comes to earning, spending, and saving. And for emerging adults, it turns out this piece of identity is a lot more powerful than we may realize. In a 2023 study, researchers Dr. Brandan Wheeler and Dr. Cecilia Brooks looked at how money lessons you learn from classes like consumer economics or family finance, and from your own family and life experiences, shape financial identity and well-being.¹ In other words, how do the money lessons you learn—and how you learn those lessons—affect who you believe you are financially? And how does that financial self-image impact how well you handle your money? Their findings can help all of us better understand the emotional and developmental side of money, especially during the critical years of emerging adulthood.
To really see why this study matters, it helps to know how financial identity takes shape in the first place. Financial identity begins to form when emerging adults start making independent money choices—getting a job, paying bills, taking out loans. But the groundwork actually starts much earlier. Early financial experiences, shaped by family interactions, build the foundation of what Gudmunson and Danes call “financial socialization.”² For example, a child who grows up watching their parents carefully budget and talk openly about money is likely to develop different financial habits than one whose family avoids money discussions or struggles financially. These repeated experiences lead to what Klontz and colleagues describe as “money scripts,” unconscious beliefs about money formed in childhood that drive adult financial behavior.³ Some common money scripts include ideas like “money should be saved at all costs” or “having more money means more happiness.” Financial socialization and money scripts help explain why people approach money so differently. Why some people feel confident and in control, while others feel anxious or avoidant. This matters because it helps explain why understanding and reshaping those early money beliefs is so important for improving how people handle their finances later on.
The study found that college students who had stronger financial identities—meaning they felt confident, responsible, and independent when it came to money—also had higher financial well-being.¹ They were more likely to feel in control, satisfied with their financial life, and less stressed. On the flip side, students who lacked a clear financial identity or had a negative view of themselves financially were more likely to experience anxiety and uncertainty around money. And here’s the key point: they found that financial education, like the consumer economics or family finance course these students took, was an important factor in helping students strengthen their financial identity. It did this by giving them tools and language to think critically about their financial behaviors and beliefs. These skills empowered students to make more informed and confident financial decisions.
Why does this matter? Because identity guides action. If you see yourself as someone who is capable and intentional with money, you’re more likely to make financial choices that reflect that self-image. And when you hit a setback, like overspending or getting hit with an unexpected bill, you’re less likely to spiral into shame or avoidance. Instead, you approach the problem with a mindset of growth and resilience. Financial identity isn’t just a reflection of past experiences; it’s a dynamic, evolving part of who you are that can be shaped and strengthened over time. Wheeler and Brooks’s research suggests that even just taking a family finance class can help emerging adults feel more empowered in their financial identity.¹ When students were encouraged to reflect on their beliefs about money and to connect course concepts to their own lives, it didn’t just change what they knew—it changed how they saw themselves. That shift is especially powerful during the emerging adult years, when identity development is front and center.
So, whether you’re a college student navigating your first credit card, a recent graduate budgeting for rent, or an emerging adult trying to figure out how to make your paycheck stretch—you’re not just building financial habits. You’re shaping your financial identity. And that identity can be a foundation for long-term well-being.
Takeaways
- Pay attention to how you view yourself when it comes to money.
Ask yourself: Do I think of myself as responsible with money? Am I confident in my ability to manage finances? If the answer is no, think about where that belief comes from—and what you can do to challenge it. - Seek out financial education.
Family finance classes or workshops don’t just give you tools—they reshape your money mindset. Even short online courses can boost confidence and long-term outcomes. - Talk about money with trusted adults.
Mentors and parents can help normalize conversations about finances, helping you build financial identity through relationship and reflection.²
References:
¹ Wheeler, B. E., & Brooks, C. (2024). Financial socialization, financial identity, and financial well-being among university students taking a consumer economics course. Journal of Family and Economic Issues, 45, 1-16. https://doi.org/10.1007/s10834-023-09930-y
² Gudmunson, C. G., & Danes, S. M. (2011). Family financial socialization: Theory and critical review. Journal of Family and Economic Issues, 32(4), 644–667. https://doi.org/10.1007/s10834-011-9275-y
3 Klontz, B. T., Britt, S. L., Mentzer, J., & Klontz, T. (2011). Money beliefs and financial behaviors: Development of the Klontz Money Script Inventory. Journal of Financial Therapy, 2(1). https://doi.org/10.4148/jft.v2i1.451