Financial Literacy: An Assessment Study of Kutch
National Conference on Exploring the Potential of Kutch: An Agenda for Academic Research, 2014
Posted: 22 Apr 2014
Date Written: January 18, 2014
Abstract
Financial literacy is gaining importance due to liberalization and innovation in financial instruments. It is considered to be responsible factor for financial well being. The growing complexity of financial products over the past decade, coupled with financial innovations, and the increasing transfer of financial risks to households, have put enormous pressure and responsibilities on shoulders of individuals. India is at the bottom among 16 countries in the Asia-Pacific region with 59 index points, according to the annual MasterCard’s index for financial literacy. In this research an attempt was made to measure the financial literacy of Kutch district which has village like Madhapur which is Southern Asia's wealthiest village. It was found that females, low income group (<5 lac pa), late teens (18-22), married and less education qualification leads to low financial literacy. Although it has not been statistically significant relations after testing chi square. Still an attempt to increase the financial literacy to 100% can achieve by focusing on the above less financial literate group.
Keywords: Financial Literacy, Financial instruments, Behavioural finance, Investment behaviour
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