Debt-accumulative behaviors have remained societally relevant for decades, particularly following the widespread adoption of credit cards. More recently, fintech innovations such as Buy Now, Pay Later (BNPL) have reshaped individuals’ cognitive and emotional relationships with debt, especially in the aftermath of the COVID-19 pandemic. Prior research suggests that higher financial literacy is associated with healthier credit behaviors (Lusardi & Tufano, 2015). This study explores the interaction between self-perceived financial literacy and actual financial knowledge, and how this dynamic influences behavior related to traditional credit cards versus newer BNPL systems. We conducted an anonymous survey to collect demographic data and assess credit-related behavior using the “Big Three” financial literacy questions. Additional items measured participants' confidence, self-perception, and emotional responses in relation to their quiz performance. We aim to determine whether individuals who perceive themselves as financially literate exhibit greater confidence in using debt-accruing tools. Furthermore, we examine whether self-perception biases individuals toward preferring one form of credit over another. Finally, we hypothesize that individuals with low financial confidence will show heightened emotional reactivity and reduced cognitive engagement in financial decision-making.
