Socio-Demographic Indicators, Intelligence, and Locus of Control as Predictors of Adult Financial Well-Being
Abstract
:1. Introduction
Hypotheses
2. Method
2.1. Participants
2.2. Measures
- (1)
- Family social background includes information on parental social class and parental education. Parental social class at birth was measured by the Registrar General’s measure of social class (RGSC). RGSC is defined according to occupational status [30]. Where the father was absent, the social class (RGSC) of the mother’s father was used. RGSC was coded on a 6-point scale: I professional; II managerial/technical; IIIN skilled non-manual; IIIM skilled manual; IV semi-skilled; and V unskilled occupations [31]. Scores were reversed. Parental education is measured by the age parents had left their full-time education.
- (2)
- Childhood Intelligence was assessed at age 10 in school using assessed in school, using a modified version of the British Ability Scales (BAS) which can serve as a measure for childhood IQ. The assessment involved the administration of four sub-scales: word definitions and word similarities which were used to measure verbal ability, and recall of digits and matrices which were used to measure non-verbal ability. The alpha for the four measures combined into a total scale was .92.
- (3)
- (4)
- Locus of Control was measured at age 16. Cohort members completed a 19-item Locus of Control Scale (Yes/No) [34]. The alpha was .72.
- (5)
- Malaise Inventory is a 24-item self-completion instrument, measuring depression, anxiety and psychosomatic illness [35] and it correlates significantly with previously diagnosed and currently treated depression. The alpha was .81.
- (6)
- Educational Qualifications was assessed at age 34, participants were asked about their highest academic or vocational qualifications. Responses are coded to the six-point scale of National Vocational Qualifications levels (NVQ) which ranges from ‘none’ to ‘university degree/higher’/equivalent NVQ 5 or 6.
- (7)
- Occupational Prestige was measured at age 38. Current or last occupation held by cohort members were coded according to the Registrar General’s Classification of Occupations (RGSC), described above, using a 6-point classification mentioned above.
- (8)
- Adult Financial Well-being is a latent variable indicated by weekly income, house ownership status, and living space (number of rooms) measured at age 38. Participants were asked about their current net payment per week (incomes were logged in the following analyses), number of rooms; and their house ownership status (1 = Live rent-free, 2 = Rent it, 3 = Buying with help of mortgage, 4 = Outright own).
3. Results
3.1. Descriptive Analysis
3.2. Correlational Analysis
3.3. Structural Equation Modelling
3.4. Model Fit
4. Discussion
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Variables | Correlation | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mean SD | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | ||
1. | Weekly net income | 402.5 (307.3) | – | |||||||||||||||
2. | Number of rooms | 5.06 (1.61) | .209 | – | ||||||||||||||
3. | House ownership | 2.93 (.56) | .116 | .203 | – | |||||||||||||
4. | Gender | .53 (.50) | −.366 | .003 | .003 | – | ||||||||||||
5. | Parental social class | 3.37 (1.20) | .158 | .057 | .159 | −.034 | – | |||||||||||
6. | Paternal education | 15.54 (1.15) | .147 | .051 | .110 | −.011 | .460 | – | ||||||||||
7. | Maternal education | 15.50 (1.05) | .132 | .046 | .119 | −.010 | .351 | .491 | – | |||||||||
8. | Word Definition scores | 11.05 (4.88) | .246 | .080 | .162 | −.133 | .296 | .257 | .262 | – | ||||||||
9. | Word Similarities scores | 28.80 (4.06) | .198 | .100 | .132 | −.109 | .269 | .226 | .218 | .624 | – | |||||||
10. | Digits recall scores | 22.78 (4.14) | .095 | .064 | .097 | .031 | .116 | .117 | .083 | .294 | .265 | – | ||||||
11. | Matrices scores | 16.50 (5.09) | .152 | .107 | .148 | .033 | .211 | .174 | .178 | .415 | .405 | .249 | – | |||||
12. | Self-esteem | 8.79 (2.60) | .134 | .101 | .080 | −.090 | .110 | .098 | .123 | .207 | .166 | .121 | .184 | – | ||||
13. | Locus of control | 14.39 (3.15) | .177 | .143 | .111 | −.012 | .165 | .143 | .134 | .320 | .283 | .166 | .259 | .216 | – | |||
14. | Malaise | 3.09 (3.05) | −.095 | −.093 | −.092 | .095 | −.066 | −.050 | −.066 | −.065 | −.061 | −.058 | −.100 | −.155 | −.210 | – | ||
15. | Educational qualifications | 2.68 (1.37) | .285 | .195 | .146 | .032 | .313 | .272 | .284 | .390 | .323 | .183 | .341 | .181 | .335 | −.127 | – | |
16. | Occupational levels | 4.21 (1.15) | .335 | .173 | .138 | −.032 | .210 | .190 | .182 | .287 | .245 | .169 | .253 | .146 | .223 | −.072 | .451 | – |
Variables | Males | Females | ||||
---|---|---|---|---|---|---|
Unstandardized Estimate | Standard Error | Standardised Estimate | Unstandardized Estimate | Standard Error | Standardised Estimate | |
Parental social status | ||||||
RGSC | 1 | .633 | 1 | .625 | ||
Father’s education | 1.153 | .053 *** | .762 | 1.117 | .053 *** | .715 |
Mather’s education | .887 | .044 *** | .655 | .885 | .044 *** | .62 |
Childhood Intelligence | ||||||
Word Definition scores | 1 | .701 | 1 | .747 | ||
Word Similarities scores | .734 | .028 *** | .64 | .735 | .030 *** | .635 |
Digits recall scores | .496 | .034 *** | .416 | .455 | .033 *** | .389 |
Matrices scores | .962 | .047 *** | .654 | .795 | .044 *** | .555 |
Adult financial well-being | ||||||
Weekly net income | 1 | .574 | 1 | .596 | ||
Number of rooms | .004 | .001 *** | .448 | .003 | .001 *** | .296 |
House ownership | .001 | .001 *** | .286 | .001 | .001 *** | .236 |
Predicting adult financial well-being | ||||||
Parental social status | 33.174 | 11.491 ** | .134 | 10.536 | 9.000 *** | .045 |
Childhood Intelligence | 6.177 | 3.763 * | .116 | 8.707 | 3.530 * | .213 |
Self-esteem | 2.676 | 2.702 | .034 | 1.906 | 1.818 | .036 |
Locus of control | 6.092 | 3.617 * | .099 | 5.295 | 3.769 * | .085 |
Malaise | −5.848 | 2.087 ** | −.091 | −.502 | 1.503 | −.011 |
Educational qualifications | 29.605 | 5.638 *** | .217 | 23.965 | 3.930 *** | .228 |
Occupational levels | 33.174 | 5.927 *** | .293 | 51.180 | 3.992 *** | .406 |
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Furnham, A.; Cheng, H. Socio-Demographic Indicators, Intelligence, and Locus of Control as Predictors of Adult Financial Well-Being. J. Intell. 2017, 5, 11. https://doi.org/10.3390/jintelligence5020011
Furnham A, Cheng H. Socio-Demographic Indicators, Intelligence, and Locus of Control as Predictors of Adult Financial Well-Being. Journal of Intelligence. 2017; 5(2):11. https://doi.org/10.3390/jintelligence5020011
Chicago/Turabian StyleFurnham, Adrian, and Helen Cheng. 2017. "Socio-Demographic Indicators, Intelligence, and Locus of Control as Predictors of Adult Financial Well-Being" Journal of Intelligence 5, no. 2: 11. https://doi.org/10.3390/jintelligence5020011