The Role of Personal Attitudes and Subjective Norms in Financial Self-Efficacy of Young Adult Immigrants of Color Living in the US

Background/Purpose: Young adult immigrants of color living in the U.S. often face barriers to financial wellbeing, including higher unemployment rates and limited access to financial institutions. Financial self-efficacy (FSE), defined as one’s perceived ability to effectively reach financial goals, has been found to play an important role in immigrants’ financial wellbeing. However, little is known about factors influencing FSE among immigrants of color. Theory of Planned Behavior posits that personal attitudes, subjective norms, and perceived behavioral control influence one’s intentions and in turn, behaviors, and can be insightful in the context of FSE of immigrant communities. Guided by the Theory of Planned Behavior, this study explores how FSE (i.e., perceived behavioral control) among young adult immigrants of color is related to social interaction anxiety (i.e., personal attitudes), and racial discrimination (i.e., subjective norms).

Methods: Data were collected in August 2023 as part of an online cross-sectional study examining FSE among young adult immigrants of color (ages 18–29) living in the U.S. who identify as non-White (N=268). Data collection was conducted through Centiment, an online survey and recruitment software. Most participants identified as Black (35.1%) or Asian (35.1%), with women representing 63.2% of the sample. The average age of participants was 24 years.

Using ordinary least squares regression, we examined the relationship between FSE (Financial Self-Efficacy Scale (x̄=15.1; range: 6-24) and social interaction anxiety (Social Interaction Anxiety Scale; x̄=15.9; 0-47) and perceived racial discrimination (Racial Ethnic Discrimination Inventory; x̄=3.7; 0-12) while controlling for demographic (i.e., gender, race, age, education level, immigration and marital status) and theoretically pertinent (i.e., the ability to ask for help from neighbors, relationship to primary childhood caregiver) covariates (p<.05).

Results: Findings indicated that higher social interaction anxiety (ß=-0.23; p=.001) and racial discrimination (ß =-0.17; p=.01) were associated with lower FSE. Additionally, participants’ immigration status was significantly related to FSE levels (ß=-0.12; p=.04), whereby young adults immigrants of color with precarious immigration statuses (e.g., immigrants without documentation) exhibited lower FSE compared to those with stable immigration statuses (i.e., permanent residents, U.S. citizens).

Conclusions/Implications: This study is among first to examine factors influencing FSE of young adult immigrants of color living in the U.S. While non-causal, findings highlight the detrimental role that racial discrimination and social interaction anxiety can play in FSE of this community. Further, findings suggest that vulnerabilities associated with a precarious immigration status extend to FSE of immigrant communities. These findings have important implications for social work practice and policy. Practitioners supporting FSE among vulnerable immigrants of color should assess and work to mitigate factors that may negatively influence clients’ FSE, such as social interaction anxiety and exposure to discrimination. Regarding policies, the effective implementation of race and immigration status linked anti-discrimination laws and practices in everyday lives of young adult immigrants of color is critical to FSE of this community. Lastly, social workers should advocate for policies that can enhance stability for immigrants with precarious legal statuses, such as access to work authorization and the social safety net.