Abstract

This paper addresses whether overindebted and non-overindebted consumers differ in their attitude toward money and how this attitude impacts three different financial behavior categories: record keeping, adjusting balance, and monitoring balance. Overindebted consumers were recruited via an NGO for consumer defense and were categorized into two subgroups: consumers who became overindebted due to internal causes and consumers who became overindebted due to external causes. Non-overindebted consumers were a convenience sample. Non-overindebted consumers showed more positive attitudes toward money than both groups of overindebted consumers and overindebted due to external causes showed more positive attitudes than overindebted consumers due to internal causes. All groups share similar financial management behaviors except for monitoring balance, which was more frequent among non-overindebted consumers. Furthermore, a regression analysis indicates that money attitudes helped explain financial behavior differences between consumers above and beyond their indebtedness status. Consumers’ attitude predicted financial behaviors, even when controlling for relevant socioeconomic variables. Further analyses comparing money attitudes and financial behavior for the three subgroups showed no differences.