Financial Knowledge, Personality Traits, and Risky Borrowing Behaviors in Iranian Households

Brenda J. Cude, Swarnankur Chatterjee and Jamal Tavosi
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Brenda J. Cude: Department of Financial Planning, Housing and Consumer Economics, College of Family and Consumer Sciences, University of Georgia, Athens, GA 30602, USA
Jamal Tavosi: Department of Financial Planning, Housing and Consumer Economics, College of Family and Consumer Sciences, University of Georgia, Athens, GA 30602, USA

Sustainability, 2020, vol. 12, issue 18, 1-16

Abstract: This article examines the influence of financial knowledge and personality traits on risky borrowing behaviors among Iranian respondents. A proprietary dataset was used in this study. Logistic regression results indicated that numeracy and knowledge of the time value of money were negatively associated with two of the three risky borrowing behaviors (borrowing more than $1500 USD and use of rent-to-own). Conscientiousness was negatively related to the same two borrowing behaviors. Neuroticism negatively influenced use of payday lending. The article concludes with financial education policy suggestions for Iran and directions for future research.

Keywords: financial knowledge; financial literacy; Iran; personality traits (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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