Abstract
This study examined the relationship between financial knowledge and credit card behavior of college students. The widespread
availability of credit cards has raised concerns over how college students might use those cards given the negative consequences
(both immediate and long-term) associated with credit abuse and mismanagement. Using a sample of 1,354 students from a major
southeastern university, results suggest that financial knowledge is a significant factor in the credit card decisions of
college students. Students with higher scores on a measure of personal financial knowledge are more likely to engage in more
responsible credit card use. Specific behaviors chosen have been associated with greater costs of borrowing and adverse economic
consequences in the past.
availability of credit cards has raised concerns over how college students might use those cards given the negative consequences
(both immediate and long-term) associated with credit abuse and mismanagement. Using a sample of 1,354 students from a major
southeastern university, results suggest that financial knowledge is a significant factor in the credit card decisions of
college students. Students with higher scores on a measure of personal financial knowledge are more likely to engage in more
responsible credit card use. Specific behaviors chosen have been associated with greater costs of borrowing and adverse economic
consequences in the past.
- Content Type Journal Article
- Pages 1-9
- DOI 10.1007/s10834-011-9259-y
- Authors
- Cliff A. Robb, College of Human Environmental Sciences, University of Alabama, 304 Adams Hall, Box 870158, Tuscaloosa, AL 35487, USA
- Journal Journal of Family and Economic Issues
- Online ISSN 1573-3475
- Print ISSN 1058-0476