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Credit card literacy and financial well-being of college students: A moderated mediation model of self-efficacy and credit card number

Yam B. Limbu (Department of Marketing, Montclair State University, Montclair, New Jersey, USA)
Shintaro Sato (Department of Marketing, Montclair State University, Montclair, New Jersey, USA)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 12 February 2019

Issue publication date: 21 May 2019

3108

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

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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