Credit card literacy and financial well-being of college students: A moderated mediation model of self-efficacy and credit card number
International Journal of Bank Marketing
ISSN: 0265-2323
Article publication date: 12 February 2019
Issue publication date: 21 May 2019
Abstract
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.
Keywords
Citation
Limbu, Y.B. and Sato, S. (2019), "Credit card literacy and financial well-being of college students: A moderated mediation model of self-efficacy and credit card number", International Journal of Bank Marketing, Vol. 37 No. 4, pp. 991-1003. https://doi.org/10.1108/IJBM-04-2018-0082
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited