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

Personal Finance, Military Families February 06, 2017 Print Friendly and PDF


Robb, C.A. and Sharpe, D.L. (2009). Effect of Personal Financial Knowledge on College Students' Credit Card Behavior. Association for Financial Counseling and Planning Education. 25-43.

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 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. 

Key words: college students, credit card use, personal financial knowledge

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This work is supported by the USDA National Institute of Food and Agriculture, New Technologies for Ag Extension project.