Abstract

Author:
Evangeline T. Comia

Doi: 10.26480/mbmj.01.2024.50.55

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Credit cards have evolved from luxury items into key financial instruments that have influenced consumer expenditure patterns and economic dynamics. The study assesses the socio-economic implications of credit cards on financial literacy among consumers in San Pablo, Laguna. This study employed a descriptive analysis and Chi-square test of association to explore the trends in the use of credit cards, financial practices, and the significance of financial literacy in prudent credit card management. The findings of this survey showed that most credit card holders are older, female, and more highly educated, thus indicating its wide use in society. However, despite the convenience and flexibility accorded to them, there is a significant gap in financial literacy manifested by its limited use in online transactions and travel expenses. It is for this reason that the study puts forward the important role of financial education in enhancing budgeting skills, and investment literacy, and hence, making informed decisions by consumers. By filling these gaps in financial literacy, policymakers and financial institutions can empower individuals to maximize these benefits while reducing risks coming out of debt from the use of credit cards and setting them on a more financially stable and well-economic life for Filipino consumers.