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

Author

Listed:
  • Brenda J. Cude

    (Department of Financial Planning, Housing and Consumer Economics, College of Family and Consumer Sciences, University of Georgia, Athens, GA 30602, USA)

  • Swarn Chatterjee

    (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)

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.

Suggested Citation

  • Brenda J. Cude & Swarn Chatterjee & Jamal Tavosi, 2020. "Financial Knowledge, Personality Traits, and Risky Borrowing Behaviors in Iranian Households," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:18:p:7608-:d:413970
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    References listed on IDEAS

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