Relationship between financial prudence, ATM card use and compulsive buying behavior among University Students

Abstract

In recent times, Nnamdi Azikiwe University students engage themselves in compulsive buying behavior, which has been found detrimental to their culture and it has resulted to some of its consequences and vices such as depression, anxiety, financial challenges, internet fraud etc. Past literatures have shown some of the antecedents of compulsive buying behavior such as money attitude but no known scientific study has examined ATM card use and financial prudence as contributing factors in developing compulsive buying behavior among these young adults. Hence, the current study investigated the relationship between financial prudence, ATM card use and compulsive buying behavior, using a total of hundred and fifty-seven (157) participants randomly drawn from two departments in the faculty of social sciences (Psychology and Mass communication) in Nnamdi Azikiwe University, Awka. They were made up of 69 males (representing 43.9%) and 88 females (representing 56.1%), with mean age of 21.34 and standard deviation of 2.10. An 11-item ATM card use scale by Feinberg (1998), a 4-item financial prudence scale by Lee et al., (1997) and a 7-item compulsive buying behavior scale by Carmines & Zeller (1979) was used in the study. Using Pearson moment correlation statistics two hypotheses were tested. The result findings indicated that the first hypothesis which stated that there will be a positive relationship between compulsive buying behavior was confirmed at (r= .380*, p> .05). Also, the result findings indicated that the second hypothesis which stated that there will be a positive relationship between financial prudence and compulsive buying behavior was rejected at (r= -207, p> .05). The result findings of the current study implies that university students who are exposed to excessive use of ATM card and who are low on financial prudence exhibits compulsive buying behavior that is detrimental to their future endeavor. It was recommended that academic institutions should educate students’ specifically on ATM card use and help students develop strategies to become financial managers to avoid compulsive buying behavior which will eventually lead them to debt.