Financial literacy, attitudes, and financial satisfaction

an assessment of credit card debt-taking behavior of Australians

Authors

  • Muhammad S. Tahir College of Business, RMIT University, Melbourne
  • Daniel W. Richards College of Business, RMIT University
  • Abdullahi D. Ahmed College of Business, RMIT University

DOI:

https://doi.org/10.61190/fsr.v28i4.3433

Keywords:

Savings attitude, Financial satisfaction, Credit card debt, Financial literacy, HILDA

Abstract

Unpaid credit card debt can be problematic; people should avoid it where possible. Unlike prior studies, this article examines the relative strength of the association of financial literacy, attitude toward balancing spending and savings, and financial satisfaction with credit card debt- taking behavior by analyzing the 2016 wave of the Household, Income and Labor Dynamics in Australia (HILDA) Survey. We find that higher financial literacy is associated with less credit card debt. However, incorporating the other factors reduces this relationship. Our results advise policy-makers to include components in the financial literacy curricula that encourage savings attitude to reduce problematic debt-taking.

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Published

2020-12-30

How to Cite

Tahir, M. S., Richards, D. W., & Ahmed, A. D. (2020). Financial literacy, attitudes, and financial satisfaction: an assessment of credit card debt-taking behavior of Australians. Financial Services Review, 28(4), 273–301. https://doi.org/10.61190/fsr.v28i4.3433

Issue

Vol. 28 No. 4 (2020): Winter 2020

Section

New Original Submission

License

Copyright (c) 2020 Academy of Financial Services

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