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

• Published in: International journal of bank marketing Vol. 37; no. 4; pp. 991 - 1003
• Main Authors: Limbu, Yam B., Sato, Shintaro
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 10.06.2019
• Subjects: Bank marketing; Behavior; College students; Confidence; Confidence intervals; Credit cards; Financial literacy; Knowledge; Perceptions; Personal finance; Studies; United States > US
• ISSN: 0265-2323; 1758-5937
• DOI: 10.1108/IJBM-04-2018-0082

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.