|Abstract or Summary
- The purpose of this study was to examine the use of consumer
credit by teenagers in Klamath Falls, Oregon. Data for the study
were obtained from a questionnaire administered to junior and senior
students in Klamath Union and Henely High Schools. Of the 295
questionnaires administered, 285 were tabulated and analyzed.
The following hypotheses were tested:
1. There is no relationship between the use of teenage consumer
credit and: (a) sex, (b) age of parents, (c) residence, (d)
amount of weekly spending, and (e) income of parents. The following
parts of hypothesis one: (a) sex, (b) age of parents, (c) residence
were accepted; but parts: (d) amount of weekly spending, and (e)
income of parents were rejected.
2. Items purchased with credit by male teenagers do not differ
from those purchased with credit by female teenagers. This hypothesis
was rejected. Of the 285 teenagers, 157 were males and 128 were females.
One hundred seven were credit users and 178 were noncredit users.
Sixty-four males and 43 females reported using credit.
Seventy-one percent of the credit users and 88 percent of the
noncredit users had $10 or less to spend weekly. The primary
source of their income was from earnings outside of the home.
Forty-four percent of the credit users and 26 percent of the
noncredit users reported earning $500 or more from summer employment.
Fifty-five percent of the credit users and 43 percent of the
noncredit users saved $100 or more of their summer employment
Fifty-three percent of the 285 teenagers indicated the annual
income of their parent ranged from $5,000 to $14,999. The credit
users came from families with higher incomes than the noncredit
users. Twenty-two percent of the credit users and only six percent
of the noncredit users reported annual incomes of over $15,000.
Twenty-nine of the 107 credit users reported having a charge
account in their own name. Seventeen of these 29 teenagers reported
they had only one account. The main reason given for opening an
account was to make buying easier.
The most common type of credit used by the teenagers was
credit cards in their parents' name. Seventy-two percent of the
teenage credit users reported using this type of credit. Oil company
cards and department store cards were the kinds more often used. Also under the parents' name, 28 percent had used 30-day charge
accounts, 21 percent installment credit and 20 percent revolving
credit. Under the teenagers' own name, both 30-day charge accounts
and installment credit were used by 20 percent. Twenty males and
nine females reported having charge accounts in their own name.
Gasoline and clothes were the main items purchased with
credit. The males reported 73 percent purchasing gasoline, 52 percent
purchasing clothes, and 23 percent making car purchases with
credit. Clothing was the item most females purchased with credit.
Eighty- eight percent purchased clothes and 63 percent purchased
About one-half of the teenagers reported the largest amount
they had charged at one time was $50 or less. The males charged
larger amounts than the females. Over 50 percent of the males and
only 19 percent of the females had charged over $76 at one time.
Only 37 percent of the teenage credit users were required by
their parents to pay for all of their credit purchases. Twenty-three
percent were not required to pay for any of their credit purchases.
Thirty-two percent were required to pay part of the debt.
The teenagers enjoyed the convenience of using credit but they
disliked paying for the interest and the purchase, and the danger of