Effects Of Personal Financial Knowledge On College Students ' Credit Card Behavior

Effects Of Personal Financial Knowledge On College Students ' Credit Card Behavior

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Effects of Personal Financial Knowledge on College Students’ Credit Card Behavior
Cliff A. Robb and Deanna L. Sharpe began their article “Effects of Personal Financial Knowledge on College Students’ Credit Card Behavior” with clarification regarding the study and also a succinct historical introduction to the ‘invasion’ of credit card companies on college campuses. Their study was based on the analysis of survey data composed from 6,520 students at a grand Midwestern University. This study revealed that financial knowledge was a compelling factor in the credit card decisions regarding college students.
They expressed that credit card companies began directing their focus on college students in an attempt to broaden their market share in the late 1980s (Robb and Sharpe, 2009, p. 25). During that time, students were encouraged to obtain credit cards by way of on-campus enrollment, direct mail promotions, on/ off-campus advertisement. “By 2001, over three-quarters of all undergraduates had one or more credit cards” (Robb and Sharpe, 2009, p. 25). These elemental advancements in how and to whom credit cards were advertised resulted in credit cards becoming a way of life for today’s college student. As the rate of college students who own credit cards grew so did the apprehension that credit card companies were taking wrongful advantage of susceptible population.
Credit card companies were looked at as luring unfamiliar and unsuspecting students to sign agreements that they did not fully comprehend. Robb and Sharpe (2009) mentioned that in doing so, credit card companies placed students in peril of excessive spending and cultivating financial adversities (p.25). To counteract this issue, a concerned group of individuals encourag...


... middle of paper ...


... authors first supplied information on this study which indicated that survey data was collected from 6, 520 students at a considerably large University in the Midwest. This study ratified that financial knowledge was indeed a major element in the credit card decisions of college students. As discovered by the authors, the gender of the college student was also played a role in their credit card behavior. It was mentioned that females often obtained more debt than males. The authors then concluded the article with further data collected from the study conducted.
Discussion Questions
1. What are your thoughts on undergraduate students owing credit cards?
2. What is the ideal age for students to possess credit cards?
3. Is it the parents’ responsibility or the school’s responsibility to ensure that the students are fully aware of what it entails to own a credit card?

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