The role of social class identity in explaining financial well-being and spending behaviors

Abstract

Social class identity is a significant predictor of important psychological outcomes, however, it remains among the less studied domains of collective identity. We analyzed whether social class identity can explain well-being and behaviors of university students in the financial domain, particularly, when the actual income is controlled. The findings from a cross-sectional study with 481 emerging adults (57.8% women; Mage=20.27) revealed that social class identity is a slightly better predictor than the actual personal and parental income for impulsive buying, financial well-being, as well as general satisfaction with life among students.