Effect of Personal Financial Knowledge on College Students’ Credit Card Behavior

19 Pages Posted: 27 Feb 2013

See all articles by Cliff A. Robb

Cliff A. Robb

University of Alabama

Deanna L. Sharpe

University of Missouri at Columbia

Date Written: 2009

Abstract

Analysis of survey data collected from 6,520 students at a large Midwestern University affirmed that financial knowledge is a significant factor in the credit card decisions of college students but not entirely in expected ways. Results of a double hurdle analysis indicated that students with relatively higher levels of financial knowledge were not significantly different from students with relatively lower levels in terms of the probability of having a credit card balance. Contrary to expectations, those with higher levels of financial knowledge had significantly higher credit card balances. Overall, the present findings highlight the complex nature of the relationship between personal financial knowledge and credit card behavior.

Keywords: college students, credit card use, personal financial knowledge

Suggested Citation

Robb, Cliff A. and Sharpe, Deanna L., Effect of Personal Financial Knowledge on College Students’ Credit Card Behavior (2009). Journal of Financial Counseling and Planning, Vol. 20, No. 1, 2009, Available at SSRN: https://ssrn.com/abstract=2224225

Cliff A. Robb (Contact Author)

University of Alabama ( email )

Department of Consumer Economics
2816 Battlement Drive
Tuscaloosa, AL 35487
United States

Deanna L. Sharpe

University of Missouri at Columbia ( email )

Consumer and Family Economics
Columbia, MO 65211
United States
573-882-9652 (Phone)
573-884-8389 (Fax)

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