Earlier financial literacy and later financial behaviour of college students

Jing Jian Xiao, Sun Young Ahn, Joyce Serido, Soyeon Shim

Research output: Contribution to journalArticlepeer-review

133 Scopus citations


This study examined the association of earlier financial literacy and later financial behaviour of college students. Financial literacy was measured by both subjective and objective knowledge and financial behaviours were categorized into risky paying and borrowing behaviours. Based on data collected at two time points from a panel of college students at a major state university in the USA, the results showed that the association between earlier knowledge and later financial behaviours differed by the specific type of knowledge (subjective vs. objective), with stronger effect of subjective knowledge, compared with objective knowledge on both composite and individual measures of risky borrowing and paying behaviours. We found that only subjective knowledge was correlated with a reduction in both composite behaviours. Both subjective and objective knowledge, however, reduced some specific risky paying and borrowing behaviours. Finally, we found consistent differences for two of the control variables: higher GPA (Grade Point Average) was associated with fewer risky paying behaviours; and gender (male vs. female) was associated with more of both types of risky behaviours.

Original languageEnglish (US)
Pages (from-to)593-601
Number of pages9
JournalInternational Journal of Consumer Studies
Issue number6
StatePublished - Nov 1 2014

Bibliographical note

Publisher Copyright:
© 2014 John Wiley & Sons Ltd.


  • Behaviour
  • Credit
  • Education
  • Financial
  • Money
  • Youth


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