Assessing the Role of Financial Literacy in Personal Financial Management

  • Shah Riya Pranav Department of Computer Science, Christ University, Bangalore
  • Shah Vansh Paras Department of Computer Science, Christ University, Bangalore
  • Rishita Shah Department of Computer Science, Christ University, Bangalore
  • Rajamohan Kavitha Department of Computer Science, Christ University, Bangalore https://orcid.org/0000-0002-7803-8901
DOI: https://doi.org/10.48001/jbmis.1101002
Keywords: Finance, literacy, data collection, adults

Abstract

Financial Literacy is essential for people to make wise financial decisions affecting society's well-being and economic prosperity. Through a thorough survey, this study evaluates the level of financial literacy among Indian adults between the ages of 20 and 50. One hundred eighty-six adult respondents from a range of demographics provided primary data. The study investigates how well they comprehend financial management ideas such as tracking expenses, creating a budget, and using financial tools. It also looks at perspectives on the value of financial literacy and the perceived results of educational programs. The analysis aims to pinpoint the differences in financial literacy, routines, expertise, and conduct between various age groups, educational backgrounds, and work situations. The results are anticipated to shed light on the advantages, disadvantages, and necessity of specific laws, initiatives, and technical advancements to improve financial inclusion and literacy. The study emphasizes the potential for wise financial decisions, economic stability, resilience against obstacles, and adopting digital financial services by arming adults with financial knowledge. It acts as a manual for developing an adult population in India that is robust, financially smart, and tech-aware.

References

Andarsari, P. R., & Ningtyas, M. N. (2019). The role of financial literacy on financial behavior. JABE (JOURNAL of ACCOUNTING and BUSINESS EDUCATION), 4(1), 24. https://doi.org/10.26675/jabe.v4i1.8524

Brau, J. C., Holmes, A. L., & Israelsen, C. L. (2019). Financial literacy among college students: An empirical analysis. Journal of Financial Education, 45(2), 179–205. https : / / www.jstor. org /stable/48632887

De Beckker, K., De Witte, K., & Van Campenhout, G. (2021). The effect of financial education on students’ consumer choices: Evidence from a randomized experiment. Journal of Economic Behavior & Organization, 188, 962–976. https://doi.org/10.1016/j.jebo.2021.06.022

Gupta, A., Mittal, P., Gupta, P. K., & Bansal, S. (2022). Implication of Privacy Laws and Importance of ICTs to Government Vision of the Future. https://doi.org/10.1007/978-981-16-3071-2_32

Jora, R. B., Sodhi, K. K., Mittal, P., & Saxena, P. (2022). Role of Artificial Intelligence (AI) In meeting Diversity, Equality and Inclusion (DEI) Goals. 8th International Conference on Advanced Computing and Communication Systems, ICACCS 2022, 1687–1690. https://doi.org/10.1109/ICACCS54159.2022.9785266

Karakurum-Ozdemir, K., Kokkizil, M., & Uysal, G. (2018). Financial literacy in developing countries. Social Indicators Research, 143(1), 325–353. https://doi.org/10.1007/s11205-018-1952-x

Kok Fei, C., Fazli, M., Shazana, A., Husniyah, M., Rahim, A., & Nuradibah, M. (2021). The effects of financial literacy, self-efficacy and self-coping on financial behavior of emerging adults. Journal of Asian Finance, 8(3), 905–0915. https://doi.org/10.13106/jafeb.2021.vol8.no3.0905

Lusardi, A. (2019). Financial literacy and the need for financial education: Evidence and implications. Swiss Journal of Economics and Statistics, 155(1), 1–8. https://doi.org/10.1186/s41937-019-0027-5

Mandal, A., Saxena, A., & Mittal, P. (2022). Financial literacy and digital product use for financial inclusion: A GETU model to develop financial literacy. 8th International Conference on Advanced Computing and Communication Systems, ICACCS 2022, 1614–1619. https://doi.org/10.1109/ICACCS54159.2022.9784962

Mittal, P., & Raghuvaran, S. (2021). Entrepreneurship education and employability skills: the mediating role of e-learning courses. Entrepreneurship Education, 4(2), 153–167. https://doi.org/10.1007/s41959-021-00048-6

Ouachani, S., Belhassine, O., & Kammoun, A. (2020). Measuring financial literacy: A literature review. Managerial Finance, 47(2), 266–281. https://doi.org/10.1108/mf-04-2019-0175

Rai, K., Dua, S., & Yadav, M. (2019). Association of financial attitude, financial behaviour and financial knowledge towards financial literacy: A structural equation modeling approach. FIIB Business Review, 8(1), 51–60. https://doi.org/10.1177/2319714519826651

Thapa, B. S., & Nepal, S. R. (2015). Financial literacy in nepal: A survey analysis from college students. NRB Economic Review, 27(1), 49–74. https://doi.org/10.3126/nrber.v27i1.52567

Published
2024-05-25
How to Cite
Pranav, S., Paras, S., Shah, R., & Kavitha, R. (2024). Assessing the Role of Financial Literacy in Personal Financial Management. Journal of Business Management and Information Systems, 11(1), 9-20. https://doi.org/10.48001/jbmis.1101002
Issue
Vol 11 No 1 (2024)
Section
Articles

Copyright (c) 2024 QTanalytics India (Publications)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

The copyright in this website and the material on this website (including without limitation the text, computer code, artwork, photographs, images, music, audio material, video material and audio-visual material on this website) is owned by QTanalytics India (Publications) and its licensors.