Attitudes toward Credit and Finances among College Students in Brazil and the United States

Abstract

Although research on credit card debt in developed countries has identified predictors of debt among<br />college students, it is unknown whether these same predictors apply in emerging markets, such as<br />Brazil. To examine this issue, a total of 1257 college students, 814 from Brazil and 443 from the United<br />States, participated in a study exploring the utility of a theory of planned behavior as a predictor of<br />credit card debtand student loans among college students, as well as perceived financial well-being.<br />Compared to the Brazilian participants, the American sample was more financially self-confident,<br />reported better financial well-being, and was more likely to believe that credit cards are negative.<br />Similar predictors of financial well-being emerged in the samples. Specifically, parenting practices<br />related to money and better self-reported delay of gratification are related to more positive financial<br />attitudes and lower levels of debt. Although the debt to income ratio among card holders was similar,<br />Brazilian students held more credit cards than American students. Greater delay of gratification was<br />related to lower levels of student loans in the United States, but there were no significant predictors of<br />student loans in Brazil.