Emerging adulthood is a liminal period with implications for well-being in adulthood. Yet little is known about how financial goal setting may strengthen financial well-being. In this study, we examine the relationship between having a financial goal and financial well-being for emerging adults as well as whether positive money management behavior offers an explanation for the observed relationship. We found that emerging adults with a financial goal are more likely to experience higher levels of money management stress and higher levels of expected future financial security, regardless of their current financial status or demographics. The relationship between having a financial goal and financial well-being was partially explained by positive money management behavior (i.e., following a budget). The results suggest that financial education programs aimed at emerging adults should integrate financial goal setting as a means of promoting higher levels of financial well-being and positive money management behaviors.

Accepted Oral Presentation