Quebec young adults’ use of and knowledge of credit

Lachance, Marie J.; Beaudoin, Pierre; Robitaille, Jean

doi:10.1111/j.1470-6431.2006.00521.x

Cited by 27 publications

(31 citation statements)

References 8 publications

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“…Also according to Lea et al. (1993), consumers who have one form of debt are more likely to have many other forms of debt as well (see also Lachance et al. , 2006).…”

Section: Resultsmentioning

confidence: 99%

“…According to their study, the average age of consumers facing payment difficulties because of instant loans is 26 years old. Thus, young adults can be considered a special group as their financial position is often weaker than that of other age groups, and they are still learning financial and credit management (Lachance et al. , 2006; McKinnon and Schröder, 2006).…”

Section: Introductionmentioning

confidence: 99%

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The use of small instant loans among young adults – a gateway to a consumer insolvency?

Autio

Wilska

Kaartinen³

et al. 2009

Int J Consumer Studies

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The aim of this paper is to study 18‐ to 29‐year‐old Finnish consumers' use of instant small loans (i.e. SMS loan) and other consumer credit services that have increased notably in the past few years. We examine what kind of expenditures instant credit is used for and focus also on young consumers' financial situation and their perceptions of themselves as money handlers. The research method is quantitative, and data are derived from an open online survey (n = 1610). Our results reveal that consumer credit is used by young people in all income brackets and employment positions. However, there is a clear connection between certain life‐course stages (young, single parent), financial positions (low income), employment situations (marginal) and the propensity to take instant loans and consumer credit. The young people who take an instant loan once are likely to do it again. Typical purposes of use included buying alcohol, cigarettes and partying. For some consumers, the use of small loans is part of controlled and economical use of money. However, particularly in the low‐income brackets, it is also common to buy food and to repay credit or interest. Young people, who use instant loans recognize flaws in their money management and see themselves as ‘wasteful’ consumers more often than those who do not use instant loans. On the basis of this empirical study, it is unquestioned that young people's consumer education needs to be strengthened. In Finland, this need has already been recognized in both consumer policy and teacher education.

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“…Also according to Lea et al. (1993), consumers who have one form of debt are more likely to have many other forms of debt as well (see also Lachance et al. , 2006).…”

Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The use of small instant loans among young adults – a gateway to a consumer insolvency?

Autio

Wilska

Kaartinen³

et al. 2009

Int J Consumer Studies

View full text Add to dashboard Cite

show abstract

“…Indeed, beginning their adult life, students or young workers often have a less stable financial situation (Lokken Worthy et al ., ) and generally show a lower level of literacy in regard to their personal finances (e.g. Lachance et al ., ; McKinnon and Schröder, ). Moreover, young adults are more likely than others to engage in more risky financial behaviours (Nelson and Barry, ; National Foundation for Credit Counseling, ).…”

mentioning

confidence: 99%

“…Regardless of their focus, most available Canadian and American studies show that young people of all ages have a low level of personal finance skills [e.g. Stafford-Smith and Mackey, 1989;Brobeck, 1991;Chen and Volpe, 1998;Consumer Federation of America, 1999;Fédération des ACEF du Québec (FACEF), 2001;Mandell, 2001;Lachance et al, 2006;Lusardi et al, 2009]. Studies on young people's personal finance practices look particularly at the number and use of credit cards and other credit products, including payment habits (Consumer Federation of America, 1999;Lachance et al, 2006;Autio et al, 2009).…”

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confidence: 99%

Young adults’ attitudes towards credit

Lachance

2012

Int J Consumer Studies

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This research project was undertaken to study young adults’ attitudes towards credit in general. A sample of 980 young Canadian adults, ages 18–29, participated in a telephone survey. Results reveal that they recognize both the advantages and the risks associated with credit. Regression analysis shows that attitudes towards credit is positively related to education, the number of credit cards held and knowledge of credit, but negatively related to the number of children. The young adults who reported that their parents and friends are heavy credit users are more likely to have positive attitudes towards credit. No link was found with the participants’ level of debt.

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“…11 Note that learning from family members is often not leading to high credit knowledge (e.g., Lachance et al., 2006 for Canada).…”

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confidence: 99%

Credit use: Psychological perspectives on a multifaceted phenomenon

2011

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Consumer borrowing is a highly topical and multifaceted phenomenon as well as a popular subject for study. We focus on consumer credit use and review the existing literature. To categorize what is known we identify four main psychological perspectives on the phenomenon: credit use as (1) a reflection of the situation, (2) a reflection of the person, (3) a cognitive process, and (4) a social process. On top of these perspectives we view credit use as a process that entails three distinct phases: (1) processes before credit acquisition, (2) processes at credit acquisition, and (3) processes after credit acquisition. We review the international literature along a two-tier structure that aligns the psychological perspectives with a process view of credit. This structure allows us to identify systematic concentrations as well as gaps in the existing research. We consolidate what is known within each perspective and identify what seems to be most urgently missing. Some of the most important gaps relate to research studying credit acquisition from the perspective of credit use as a reflection of the person or as a social process. In particular, research on credit use as a reflection of the person appears to focus exclusively on the first stage of the credit process. We conclude with a discussion that reaches across perspectives and identifies overarching gaps, trends, and open questions. We highlight a series of implicit linkages between perspectives and the geographical regions in which studies related to the perspectives were conducted. Beyond diagnosing a geographical imbalance of research, we argue for future research that systematically addresses interrelations between perspectives. We conclude with a set of global implications and research recommendations.

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Quebec young adults’ use of and knowledge of credit

Cited by 27 publications

References 8 publications

The use of small instant loans among young adults – a gateway to a consumer insolvency?

The use of small instant loans among young adults – a gateway to a consumer insolvency?

Young adults’ attitudes towards credit

Credit use: Psychological perspectives on a multifaceted phenomenon

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