When I was growing up, I couldn’t wait to be an adult. Now that I am one, I often find myself wondering what being an adult really means. Do we wake up one day and feel like we are an adult? Or is it something that develops as we go through adult-like experiences? To answer these questions, let's examine the concept of adult identity.
So, what is adult identity? One article defined adult identity as the inherent feeling of being an adult, experiences in which one is recognized as such, and/or the attainment of adult status.1 For many of us, adult identity comes when we are able to accomplish “adulting” or can “adult” successfully. Adulting is the process of effectively managing adult responsibilities, such as paying bills on time and budgeting time efficiently. During emerging adulthood, new experiences and opportunities enable new levels of independence to be gained in many aspects of one’s life. This newfound independence and experience stabilize one’s adult identity.2,3 These are the moments when we begin to see ourselves as adults and take on the responsibilities that come with transitioning into independence.
But wait—isn’t this a financial website? Where do finances fit into this? Hold your horses; I’m getting there. The aspect of adult identity I want to focus on stems from research that links finances and financial independence to adult identity development. In short, finances impact adult identity development, and in some cases, how much we feel like adults.1
Finances in College and Post-Graduation
Interestingly, in one study of college students by Dr. Xiaomin Li and other researchers, financial behaviors (such as creating an emergency fund and/or tracking cash flow through budgeting) learned during the fourth year of college (financial classes, experiences with money, etc.) stuck with the students even half a decade later, contributing to adult identity development.1 This means that financial behaviors learned during emerging adulthood—whether they be negative financial behaviors (like excessive spending or prioritizing wants over needs) or positive (like staying away from bad debt and keeping to a budget)—might remain in force throughout the rest of your life. The implications for this on adult identity development might include those negative behaviors inhibiting your ability to be financially responsible, thus postponing complete financial independence. Or, those positive behaviors support your complete independence and help strengthen your overall adult identity.
Dr. Li’s study also looked at the transition to the workforce and how experiences outside of college (such as buying a home or contributing to a 401(k)) impact financial behaviors and, thus, adult identity.1 The researchers identified that potential supportive experiences (like attending a financial class) and challenging financial experiences (like paying off loans or unexpected bills) contribute to the development of adult identity post-graduation.1 So, even if you graduate with financial behaviors you want to change, there is still hope for developing positive financial behaviors.
Finances in Romantic Relationships
The last thing I want to highlight is the impact of the financial behaviors of romantic partners, coupled with romantic relationship satisfaction, both of which have implications for adult identity. Scholars have found that positive financial behaviors from your romantic partner contributed to relationship satisfaction.1 Furthermore, because of that relationship satisfaction, financial behaviors contributed to both emerging adult identity and adult identity development through an internalization of shared positive “adult-like” behaviors between partners.1 In short, your partner's financial behaviors affect how satisfied you are in the relationship and how you internalize your identity, developing your overall feelings of whether or not you are an adult. This means that if you are in a relationship with a romantic partner who has positive financial behaviors, you, in turn, see yourself as more of an adult because of that romantic relationship with a person who has positive adult behaviors. That also could be why you are more satisfied in the relationship, because you see that partner as recognition that you have made it as an adult through seeing their positive financial behavior and its impact on your relationship.
Woah, that was wordy. Let me summarize it all for you and give some takeaways with tips and tricks you could try today. Basically, financial behaviors developed in college and throughout emerging adulthood matter. There is still hope for developing positive financial behaviors after graduation or during the later stages of emerging adulthood. Also, regardless of whether or not you attended college, feeling like an adult often begins when we take steps toward financial independence. This could include developing positive financial behaviors and even trying to choose romantic partners with positive financial behaviors.
Takeaways
1) What you do now matters for later. We all sometimes feel a rush to buy what we want when we want it and think about the consequences later, but—for better or worse—research has found that humans are creatures of habit.4 This means that financial behaviors chosen in emerging adulthood can stick with you for years to come.1 Develop positive financial habits now like learning to budget, making financial goals, and working on an emergency fund, rather than putting them off for later.
2) Financial milestones can shape your adult identity. Researchers found that post-graduation supportive situations (such as employer-offered financial classes) and challenging conditions (such as paying off student loans) can contribute to adult identity.1 This means that the transition from college into the workforce can contribute to your sense of becoming an adult in society. Attending financial courses offered by your employer or banking institution could be a good idea and can help you feel more like an adult as you develop financial independence.
3) Finances matter in choosing romantic partners. Both romantic partners' financial behaviors and satisfaction in the relationship affect adult identity development.1 Choosing a partner with good financial behaviors and where you can feel satisfaction in the relationship is key in emerging adulthood and throughout life, and might help you feel more like an adult.
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References:
1Li, X., Curran, M., Zhou, N., Serido, J., Shim, S., & Cao, H. (2019). Financial behaviors and adult identity: Mediating analyses of a college cohort. Journal of Applied Developmental Psychology, 64, 101049. https://doi.org/10.1016/j.appdev.2019.101049
2Arnett, J. J. (2007). Emerging adulthood: What is it, and what is it good for? Child Development Perspectives, 1(2), 68–73. https://doi.org/10.1111/j.1750-8606.2007.00016.x
3Tanner, J. L. (2006). Recentering During Emerging Adulthood: A Critical Turning Point in Life Span Human Development. In J. J. Arnett & J. L. Tanner (Eds.), Emerging adults in America: Coming of age in the 21st century (pp. 21–55). American Psychological Association. https://doi.org/10.1037/11381-002
4Mendelsohn, A. I. (2019). Creatures of habit: The neuroscience of habit and purposeful behavior. Biological Psychiatry, 85(11), e49–e51. https://doi.org/10.1016/j.biopsych.2019.03.978