A Study on Influence of Financial Cognition on Personal Financial Planning of Indian Households

23 Pages Posted: 22 Sep 2017 Last revised: 22 Mar 2018

See all articles by Mousumi Mahapatra

Mousumi Mahapatra

Institute of Public Enterprise (IPE)

Anupam De

National Institute of Technology (NIT), Durgapur

Date Written: September 21, 2017

Abstract

The term financial planning has been an area of research interest since few years. Studies have underlined the influence of various cognitive factors in individuals’ financial decisions. The present study is also trying to underline the influence of various cognitive factors in personal financial planning of Indian households. The term financial cognition considered three components namely financial attitude, risk attitude and financial knowledge and raise the concern about the influence of various cognitive factors on individual personal financial planning. Especially in India, being a conservative attitude towards financial decisions, individual households do have higher influence of various cognitive and behavioral aspects in their suboptimal decision towards personal financial planning. The present study is putting forward those aspects of personal financial planning decisions of Indian households. The main objective of the model is to create the bare minimum structure to demonstrate the influence of financial cognition on personal financial planning among Indian households. The study mainly tried to explore the fundamental principle of subjective thinking towards financial decision. The model would represent the influence of financial cognition towards people financial decisions and can be helpful in exploring the financial information process. The study used PLS-SEM to explore PFP process in all the area of financial interest i.e. cash flow management, investment, insurance, retirement, tax and estate planning. The salaried individuals from different sectors are considered as sample for the study. The analysis has been done with 452 responses from Indian households.

Keywords: Financial Cognition, Personal financial Planning, Households, Financial Decisions, Financial Attitude, Risk attitude, Financial Knowledge

Suggested Citation

Mahapatra, Mousumi and De, Anupam, A Study on Influence of Financial Cognition on Personal Financial Planning of Indian Households (September 21, 2017). 2018 Academic Research Colloquium for Financial Planning and Related Disciplines. Available at SSRN: https://ssrn.com/abstract=3040807 or http://dx.doi.org/10.2139/ssrn.3040807

Mousumi Mahapatra (Contact Author)

Institute of Public Enterprise (IPE) ( email )

Shamirpet
Telangana
Hyderabad, Tamil Nadu 500101
India

Anupam De

National Institute of Technology (NIT), Durgapur ( email )

M.G. Avenue
Durgapur, West Bengal 713209
India

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
58
Abstract Views
352
rank
387,662
PlumX Metrics