Are college students at greater risk of credit card abuse? Age, gender, materialism and parental influence on consumer response to credit cards

2012 ◽  
Vol 17 (2) ◽  
pp. 148-162 ◽  
Author(s):  
Yam B Limbu ◽  
Bruce A Huhmann ◽  
Bing Xu
Keyword(s):  
College Students ◽  
Credit Card ◽  
Parental Influence ◽  
Credit Cards ◽  
Consumer Response

Materialism and Credit Card Use by College Students

2000 ◽  
Vol 86 (2) ◽  
pp. 643-652 ◽  
Author(s):  
Mary Beth Pinto ◽  
Diane H. Parente ◽  
Todd S. Palmer
Keyword(s):  
College Students ◽  
Credit Card ◽  
Credit Cards ◽  
The United States ◽  
College Campuses ◽  
Spending Patterns ◽  
Significant Difference ◽  
Students Attitudes ◽  
The Relationship ◽  
Credit Card Use

Much has been written in the popular press on credit card use and spending patterns of American college students. The proliferation of credit cards and their ease of acquisition ensure that students today have more opportunities for making more credit purchases than any other generation of college students. Little is known about the relationship between students' attitudes towards materialism and their use of credit cards. A study was conducted at three college campuses in the northeastern part of the United States where a total of 1,022 students were surveyed. Students' attitudes toward use of credit and their credit card balances were evaluated relative to their scores on Richins and Dawson's Materialism Scale (1992). Our findings suggest no significant difference between those individuals scoring high versus low on the Materialism Scale in terms of the number of credit cards owned and the average balance owed. Individuals high on materialism, however, significantly differed in terms of their uses for credit cards and their general attitude toward their use.

scholarly journals Credit Card Usage Among College Students in China

2018 ◽  
Vol 29 (2) ◽  
pp. 304-315 ◽  
Author(s):  
Rui Yao ◽  
Xiangyi Meng
Keyword(s):  
College Students ◽  
Credit Card ◽  
Credit Cards ◽  
Common Method ◽  
Financial Knowledge ◽  
Chinese College Students ◽  
Credit History ◽  
Using Data ◽  
High Level ◽  
Credit Card Usage

Credit cards have become a common method of payment for college students in China. It is important that they form good credit card usage behaviors and build a good credit history early in their financial life. Using data collected from 10 universities in China, results of this study found that being financially dependent on their parents is negatively associated with Chinese college students’ ability to pay their credit card bills. The study also found that students with a high level of financial knowledge were less likely to take cash advances on their credit card. Implications for financial educators and parents as well as policymakers were provided.

scholarly journals Attitudes toward Credit and Finances among College Students in Brazil and the United States

2013 ◽  
Vol 1 (1) ◽  
pp. 132 ◽  
Author(s):  
Jill M. Norvilitis ◽  
Wesley Mendes-Da-Silva
Keyword(s):  
United States ◽  
College Students ◽  
Parenting Practices ◽  
Credit Card ◽  
Student Loans ◽  
Credit Cards ◽  
Well Being ◽  
Developed Countries ◽  
The United States ◽  
Delay Of Gratification

Although research on credit card debt in developed countries has identified predictors of debt among<br />college students, it is unknown whether these same predictors apply in emerging markets, such as<br />Brazil. To examine this issue, a total of 1257 college students, 814 from Brazil and 443 from the United<br />States, participated in a study exploring the utility of a theory of planned behavior as a predictor of<br />credit card debtand student loans among college students, as well as perceived financial well-being.<br />Compared to the Brazilian participants, the American sample was more financially self-confident,<br />reported better financial well-being, and was more likely to believe that credit cards are negative.<br />Similar predictors of financial well-being emerged in the samples. Specifically, parenting practices<br />related to money and better self-reported delay of gratification are related to more positive financial<br />attitudes and lower levels of debt. Although the debt to income ratio among card holders was similar,<br />Brazilian students held more credit cards than American students. Greater delay of gratification was<br />related to lower levels of student loans in the United States, but there were no significant predictors of<br />student loans in Brazil.

Self-Destructiveness and Credit Card Debt

1997 ◽  
Vol 81 (2) ◽  
pp. 634-634 ◽  
Author(s):  
Joseph Politano ◽  
David Lester
Keyword(s):  
College Students ◽  
Credit Card ◽  
Credit Cards ◽  
Credit Card Debt

In a sample of 41 college students, poor use of credit cards was not associated with a measure of general self-destructiveness.

Relationship of Credit Attitude and Debt to Self-Esteem and Locus of Control in College-Age Consumers

2004 ◽  
Vol 94 (3_suppl) ◽  
pp. 1405-1418 ◽  
Author(s):  
Mary Beth Pinto ◽  
Phylis M. Mansfield ◽  
Diane H. Parente
Keyword(s):  
College Students ◽  
Locus Of Control ◽  
Psychological Factors ◽  
Credit Card ◽  
Credit Cards ◽  
Self Esteem ◽  
College Age ◽  
Significant Difference ◽  
User Groups ◽  
And Behavior

College-age consumers are one of the groups most highly targeted by credit card marketers. While some college students use their credit cards wisely, others are unable to control their spending. The objective of this study was to investigate differences in attitude toward credit cards and the psychological factors of self-esteem and locus of control among college students who possess one or more credit cards. Attitude was operationalized to include three underlying components: cognitive, affective, and behavioral. We separated credit users into subcategories based on amount of installment debt. Convenience users were defined as those consumers who paid the credit-card balance in full each month. Installment users were classified as consumers who carried a balance month-to-month. Convenience users were compared to mild and heavy installment users to assess significance of differences in attitudinal and psychological factors. There were no significant differences in the psychological factors across the credit-card user groups. In addition, there was a statistically significant difference on each of the attitude components (knowledge/beliefs, affect, and behavior) across user groups; convenience users, mild installment, and heavy installment users.

Self-Control and Credit-Card Use among College Students

2003 ◽  
Vol 92 (3_suppl) ◽  
pp. 1067-1078 ◽  
Author(s):  
Phylis M. Mansfield ◽  
Mary Beth Pinto ◽  
Diane H. Parente
Keyword(s):  
College Students ◽  
Credit Card ◽  
Credit Cards ◽  
Self Control ◽  
Convenience Sample ◽  
Control Scale ◽  
Significant Difference ◽  
Traditional Age ◽  
The Relationship ◽  
Credit Card Use

This study assessed the relationship between sell-control and credit-card use with a convenience sample of 165 traditional-age college students of whom 69 (42%) were women. Students' self-control was measured on Grasmick, et al.'s Self-control Scale, which has six subscales, one of which is Impulsivity. Comparisons were made between those students who paid their cards off each month, called convenience users, and those who carried a monthly balance forward on scores on total self-control and impulsivity, and number of credit cards possessed. A significant difference in self-control scores was found between these two groups and also for mean impulsivity scores. Significantly fewer credit cards were possessed by students who paid their cards off each month than by those who carried a monthly balance.

Credit card consumers: college students’ knowledge and attitude

2000 ◽  
Vol 17 (7) ◽  
pp. 617-626 ◽  
Author(s):  
Jacquelyn Warwick ◽  
Phylis Mansfield
Keyword(s):  
College Students ◽  
Interest Rate ◽  
Exploratory Study ◽  
Credit Card ◽  
Credit Cards ◽  
Knowledge And Attitude

Given the proliferation of the credit card industry in today’s US households, and the aggressive promotional tactics employed to get college students to sign on as customers, this exploratory study takes a look at the credit card activity of college students at one Midwestern campus. The majority of students surveyed did not report knowledge of their credit card interest rate, although approximately half did report knowing their credit balance and credit limit. Students appear to have a realistic attitude toward the use of credit cards.

Credit card literacy and financial well-being of college students

2019 ◽  
Vol 37 (4) ◽  
pp. 991-1003 ◽  
Author(s):  
Yam B. Limbu ◽  
Shintaro Sato
Keyword(s):  
College Students ◽  
Self Efficacy ◽  
Credit Card ◽  
Credit Cards ◽  
Well Being ◽  
Content Type ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
The Relationship

Purpose By testing a moderated mediation model, the purpose of this paper is to examine the mediating role of credit card self-efficacy in the relationship between credit card literacy and financial well-being. The authors further examine if credit card number moderates this effect. Design/methodology/approach Data for the study were collected from 427 college students. The PROCESS macros in IBM SPSS Statistics 23 was used to assess the hypothesized relationships. Findings Credit card literacy positively influences financial well-being through self-efficacy. However, this effect is stronger when college students own fewer credit cards. Practical implications Banks and credit card issuers, policymakers and colleges and universities should place a greater emphasis on credit card literacy programs that enhance students’ general understanding of credit card terms and conditions and confidence in their ability to effectively use and manage their credit cards. Originality/value To our knowledge, this is the first study to examine the relationship between credit card literacy, self-efficacy and financial well-being.

Consumers‟ Acceptance of „Halal‟ Credit Card Services: An Empirical Analysis

2015 ◽  
Vol 3 (1) ◽  
pp. 51 ◽  
Author(s):  
Zaimy Johana Johan ◽  
Lennora Putit
Keyword(s):  
Perceived Control ◽  
Credit Card ◽  
Credit Cards ◽  
Product Knowledge ◽  
Key Factors ◽  
Developing Nation ◽  
Business Transactions ◽  
Factors Influencing ◽  
Financial Credit ◽  
Survey Questionnaires

Many past researches have been carried out in an attempt to continuously understand individuals‟ consumption behaviour. This study was conducted to investigate key factors influencing consumers‟ potential acceptance of halal (or permissible) financial credit card services. Specifically, it anticipated the influence of attitude, social influences and perceived control on consumers‟ behavioural intention to accept such services. In addition, factors such as religiosity and product knowledge were also postulated to affect consumers‟ attitude towards the act of using halal credit cards for any retail or business transactions. Using non-probability sampling approach, a total of 500 survey questionnaires was distributed to targeted respondents in a developing nation but only 220 usable feedbacks were received for subsequent data analysis. Regression results revealed that religiosity and product knowledge significantly influence consumers‟ attitude toward using halal credit card services.  Attitude in turn, subsequently has a significant impact on consumers‟ intention to accept halal financial credit card services. Several theoretical and managerial contributions were observed in this study.   

scholarly journals Neural mechanisms of credit card spending

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Sachin Banker ◽  
Derek Dunfield ◽  
Alex Huang ◽  
Drazen Prelec
Keyword(s):  
Credit Card ◽  
Credit Cards ◽  
Purchase Behavior ◽  
Facilitation Effect ◽  
Product Price ◽  
Personal Credit ◽  
Psychological Mechanisms ◽  
Network Activation ◽  
Payment Instruments ◽  
Reward Network

AbstractCredit cards have often been blamed for consumer overspending and for the growth in household debt. Indeed, laboratory studies of purchase behavior have shown that credit cards can facilitate spending in ways that are difficult to justify on purely financial grounds. However, the psychological mechanisms behind this spending facilitation effect remain conjectural. A leading hypothesis is that credit cards reduce the pain of payment and so ‘release the brakes’ that hold expenditures in check. Alternatively, credit cards could provide a ‘step on the gas,’ increasing motivation to spend. Here we present the first evidence of differences in brain activation in the presence of real credit and cash purchase opportunities. In an fMRI shopping task, participants purchased items tailored to their interests, either by using a personal credit card or their own cash. Credit card purchases were associated with strong activation in the striatum, which coincided with onset of the credit card cue and was not related to product price. In contrast, reward network activation weakly predicted cash purchases, and only among relatively cheaper items. The presence of reward network activation differences highlights the potential neural impact of novel payment instruments in stimulating spending—these fundamental reward mechanisms could be exploited by new payment methods as we transition to a purely cashless society.

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