Between Knowledge and Strategy: A Cross-Sectional Study on Financial Literacy, Coping, Consumer Loans, and Payment Preferences Among Young Adults in Sweden

Over-indebtedness is at an all-time high in Sweden. The purpose of this study was to examine the relationships between financial literacy, coping strategies, and consumer financial behaviour. A further aim was to examine gender differences in this context. The study employed a cross-sectional survey design, in which participants (n = 2057) responded to questions related to the study variables. The results of the analysis found a significant relationship between financial literacy, problem-focused coping, and direct payment. Alongside this, the results revealed a significant relationship between financial illiteracy, avoidant coping, having consumer loans, and deferred payment strategies. Men were more likely to have consumer loans and to choose credit payment. Women were more likely to choose the Buy-Now-Pay-Later option in comparison to men. The findings of the present study can provide valuable insights on the psychological aspects of consumer financial behaviour. Additionally, it is recommended that financial literacy be continuously investigated as a potential “protective shield,” particularly in relation to psychological well-being, as well as in the context of the need for extended financial education.