Financial education and credit card usage behavior among undergraduate students

Abstract

This study explores the relationship between financial education and credit card usage behavior among undergraduates students, focusing on how financial knowledge influences responsible credit management. With the growing accessibility of credit cards to young adults, particularly students, concerns have emerged regarding impulsive spending, debt accumulation, and financial mismanagement. The research investigates whether exposure to financial education—through formal coursework, seminars, or financial literacy programs—leads to more prudent credit card usage, including timely repayments, budgeting, and avoidance of excessive debt. A quantitative research design was employed using structured questionnaires distributed to a sample of undergraduates students from various faculties. The collected data were analyzed through descriptive and inferential statistics to determine patterns in financial behavior and the impact of financial education. The findings reveal that students who have received some form of financial education demonstrate significantly more responsible credit card usage, showing greater awareness of interest rates, repayment schedules, and the consequences of debt. In contrast, students with limited or no financial education are more prone to impulsive purchases, minimumonly

payments, and poor debt management. The study highlights the crucial role of financial education in fostering healthy financial habits among young adults. It recommends the integration of financial literacy modules into university curricula to equip students with essential skills for managing credit and achieving long-term financial wellbeing. These insights contribute to the broader discourse on youth financial behavior and support the need for proactive educational policies in the age of increasing financial independence and consumer access.