IDEAS home Printed from https://ideas.repec.org/a/ids/ijbeaf/v5y2015i1p1-26.html
   My bibliography  Save this article

Credit cards, financial responsibility, and college students: an experimental study

Author

Listed:
  • Lucy F. Ackert
  • Bryan K. Church

Abstract

Policymakers are concerned about the limited financial expertise of young adults because their naiveté leaves them vulnerable to the perils of excess debt. We report the results of three experiments designed to investigate college students' mental representations of credit cards, focusing on linkages to financial responsibility. Students complete an inferential reasoning task in which they assess conditional relations to provide evidence on their rudimentary understanding of what credit card ownership entails. The findings suggest that students readily associate credit card ownership with the need to exercise financial responsibility. Yet, they have difficulty correctly assessing conditional relations. While these young adults believe that they should be financially responsible, their mental models do not fully describe the linkages between credit card ownership and financial responsibility. Additional investigation indicates that analogical transfer can be used to enrich students' mental models, underscoring an obligation to exercise financial responsibility.

Suggested Citation

  • Lucy F. Ackert & Bryan K. Church, 2015. "Credit cards, financial responsibility, and college students: an experimental study," International Journal of Behavioural Accounting and Finance, Inderscience Enterprises Ltd, vol. 5(1), pages 1-26.
  • Handle: RePEc:ids:ijbeaf:v:5:y:2015:i:1:p:1-26
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=71041
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbeaf:v:5:y:2015:i:1:p:1-26. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Parker). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID==237 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.