Financial education, materialism and the value of money: its effect on college students' indebtedness
Abstract
The tendency to incur debt in the Mexican population increases financing costs and the probability of default. In this sense, this paper analyzes the impact of financial education, the value of money and materialism on indebtedness among university students in Baja California. The research is quantitative, non-probabilistic and cross-sectional, with a random sample of 333 subjects. The relationships between constructs were tested using partial least squares (PLS) models. The results show that five of the six proposed relationships are statistically significant: financial education and the value of money positively affect indebtedness. The model weakly explains indebtedness (0.238) and the value of money (0.147). This research contributes to the knowledge of indebtedness in young and adult university students by considering new factors that influence their decision to make purchases on credit that lead them to become indebted.
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