Money Attitudes, Credit Card Use, and Compulsive Buying among American College Students

TLDR

Consumer culture, driven by evolving attitudes toward money and widespread credit card use, has become a powerful force shaping individuals, especially American college students, and is linked to overspending. The study aimed to examine how money attitudes and credit card use influence compulsive buying among American college students. A causal modeling approach was employed to investigate these relationships. Results indicate that money attitudes such as powerprestige, distrust, and anxiety are closely associated with compulsive buying, with credit card use moderating these effects, highlighting implications for public policy, marketing, and research.

Abstract

The consumer culture has evolved into one of the most powerful forces shaping individuals and societies (Roberts and Sepulveda 1999 a, b). The desire to become a member of the consumer culture appears to be universal (Droge and Mackoy 1995). Changing attitudes toward money are an important catalyst behind the spread of the consumer culture. Money is important—especially to American college students who have been raised in a credit card society where debt is used freely (Ritzer 1995). Schor (1998) believes that access to easy credit is one of the causes of overspending. Using a causal modeling approach, the present study investigated the role money attitudes and credit card use play in compulsive buying within a sample of American college students (see Figure 1). Findings suggest that the money attitudes powerprestige, distrust, and anxiety (Yamauchi and Templer 1982) are closely related to compulsive buying and that credit card use often moderates these relationships. Study results have important public policy, marketing, and research implications.