The Relationship between Military Service and Financial Responsibility for Males with High and Low Levels of Financial Socialization

Faculty Sponsor: Professor Maryam Gooyabadi

Live Poster Session: Zoom Link

Jane Doe
Colm Davidson

Colm Davidson is a second-semester senior at Wesleyan University majoring in Economics and East Asian Studies. He is most interested in researching the interactions between government policy and economic effects on the international stage. Mr. Davidson will be starting his professional career in geopolitical risk strategy consulting in Washington, D.C. after graduating this December. 

Abstract: This study explores the relationship between military service and financial responsibility among males with varying levels of financial socialization. Using data from 2,261 male respondents under 62 from the Consumer Financial Protection Bureau (CFPB) financial well-being dataset, the research investigates whether the financial education mandated for service members correlates with improved monetary habits and mitigates the adverse effects of low financial socialization. Financial socialization was measured through childhood financial education experiences, while financial responsibility was assessed using indicators like possession of bank accounts, life insurance, and retirement savings.

Bivariate analyses revealed that military service significantly increased the likelihood of life insurance (OR 1.865, p<.001) and 401k plan ownership (OR 1.689, p<.001) but had no significant effect on other financial behaviors. Multivariate analyses confirmed these results and highlighted a significant interaction between military service and financial socialization, indicating that military service reduces the positive influence of financial socialization on life insurance ownership. These findings suggest that military financial education fosters certain responsible financial behaviors and partially offsets deficiencies in early financial socialization. Future research should examine the distinct impacts of military financial education and the broader financial challenges faced by service members.