The Impact of Socio-Economic Factors on The Development of Compulsive Buying Disorders

Abstract

Compulsive buying disorder, characterized by repetitive purchasing as a coping mechanism for negative emotions such as anxiety and depression, leads to adverse long-term consequences. It is closely related to credit card debt, with compulsive buyers often relying on credit cards to fund their excessive purchasing habits. This study investigates the relationship between socioeconomic factors and the development of compulsive buying disorder among college students in New Jersey. The study hypothesized that students with higher income, better employment status, higher socioeconomic status, greater economic security, fewer credit cards, or low credit card debt are more likely to be compulsive buyers. The study further speculated that students with a background in financial literacy or a high education level are less likely to be compulsive buyers. Data were collected through surveys distributed online and in person using the Richmond Compulsive Buying Scale and questions targeting various socioeconomic factors. The analyses of their mean values revealed significant associations between credit card ownership, credit card debt levels, and CBD, indicating that access to credit and debt are drivers of compulsive buying. Contrary to initial expectations, the study found no significant differences in education level, financial background, employment status, or socioeconomic status between compulsive and non-compulsive buyers. However, variations in monthly income and economic security between the two groups were present. This study found that credit card usage, credit card debt, monthly income, and economic security were socioeconomic factors that influenced compulsive buying behavior, whereas education level, financial background, employment status, and socioeconomic status did not.