The impact of the social class on the development of money knowledge

• Author(s): Piçarra, Rita Isabel Pomar
• Date: 2012
• Persistent ID: http://hdl.handle.net/10362/9613
• Origin: Repositório Institucional da UNL
• Subject(s): Social class; Money knowledge; Children; Consumer socialization
• Document Type: Master thesis
• Language: English
• Advisor(s): Agante, Luísa
• Contributor(s): RUN

Description

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

Purpose – The present study aims to understand if young consumers’ knowledge about money, covering price evaluations, opinions towards savings, allowances attribution and price-quantity judgments, is influenced by the social class, age and gender of the child. Methodology – 249 children and parents from the 3rd and 6th grades from public and private schools participated in this study. Questionnaires were used as the main research tool. Findings – We concluded that children from higher social classes experience fewer co-shopping activities with their parents. Concerning money knowledge, age has an impact on the accuracy of price evaluations, with older children being more precise. Moreover, it was found that as children grow, the attribution of allowances becomes more frequent, and in terms of savings, girls were shown to be more concerned. Regarding price-quantity evaluations, and as expected, older children took more time to make a purchase decision. Research Limitations – The main limitation of this research was the narrow range of ages, and the geographic concentration of the sample in Portugal, namely Lisbon and surrounding areas. Practical Implications – As children represent an easy target to many companies, they are constantly being blitzed through advertisements and appealing product packages. This study aims to explore what factors are responsible for the development of children’s ability to evaluate the value of goods and to make price/quantity judgments. Value – This research deepens the knowledge about young consumers, their buying skills, and what influences their development. It is essential to enable educators and parents to support children in the development of their choice-making and buying abilities.