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Why Study Young Adults’ Indebtedness? Read chapter Read first chapter

2019 | OriginalPaper | Chapter

5. Young Adults’ Consumption Desires, Feelings of Financial Scarcity and Borrowing

Authors : Amelie Gamble, Tommy Gärling, Patrik Michaelsen

Published in: Indebtedness in Early Adulthood

Publisher: Springer International Publishing

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Abstract

Young adults use credit cards and store installments to borrow to consumption that improves their material life-style, for instance purchases of new models of smartphones, computers or other electronic gadgets, weekend travel or vacations in distant foreign countries. Over-borrowing is a potential problem. One determinant is present-biased temporal discounting which in young adults may result from desires to purchase attractive consumer products that are not affordable. Research is reviewed that both supports and does not support this claim. Other determinants are a positive attitude toward borrowing for purchases of consumer products or low financial involvement and knowledge. Empirical evidence is reported that attitude is most important. A negative attitude may have the role of a heuristic that suppresses decisions to borrow.

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previous chapter Young Adults’ Attitudes Toward Borrowing
next chapter Impacts of Loan Communication on Young Adults’ Borrowing
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Metadata
Title
Young Adults’ Consumption Desires, Feelings of Financial Scarcity and Borrowing
Authors
Amelie Gamble
Tommy Gärling
Patrik Michaelsen
Copyright Year
2019
Book
Indebtedness in Early Adulthood

Print ISBN: 978-3-030-13995-7

Electronic ISBN: 978-3-030-13996-4

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-3-030-13996-4_5