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Financial Literacy and Debt

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Indebtedness in Early Adulthood

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Abstract

Given the empirical evidence of the effect of financial literacy on a number of debt-related financial behaviors, such as e.g., mortgage-related decisions and use of credit cards, the construct of financial literacy is defined (including both level of objective knowledge and individuals’ own perception of level of knowledge) and discussed, both in general and connected to borrowing decisions. Together with age, gender, education, and income, the impact of financial literacy on a number of variables (including choice of variable or fixed mortgage rates, use of credit cards and use of pawn shops) is assessed and discussed. The connection between literacy and indebtedness for the group of young adults is also specifically addressed.

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Author information

Authors and Affiliations

  1. Department of Psychology, University of Gothenburg, Göteborg, Sweden

    Anders Carlander

  2. School of Business, Economics and Law, University of Gothenburg, Göteborg, Sweden

    Jeanette Carlsson Hauff

Authors
  1. Anders Carlander
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  2. Jeanette Carlsson Hauff
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Correspondence to Anders Carlander .

Editor information

Editors and Affiliations

  1. School of Business, Economics and Law, University of Gothenburg, Göteborg, Sweden

    Jeanette Carlsson Hauff

  2. School of Business, Economics and Law, University of Gothenburg, Göteborg, Sweden

    Tommy Gärling

  3. School of Business, Economics and Law, University of Gothenburg, Göteborg, Sweden

    Ted Lindblom

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Carlander, A., Hauff, J.C. (2019). Financial Literacy and Debt. In: Hauff, J., Gärling, T., Lindblom, T. (eds) Indebtedness in Early Adulthood. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-13996-4_7

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  • DOI: https://doi.org/10.1007/978-3-030-13996-4_7

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-13995-7

  • Online ISBN: 978-3-030-13996-4

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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