Financial Literacy of Indian Youth: A Study on the Twin Cities of Hyderabad–Secunderabad

• Published in: IIM Kozhikode society & management review 2017-07, Vol.6 (2), p.132-147
• Main Authors: Mahapatra, Mousumi Singha, Alok, Swati, Raveendran, Jayasree
• Format: Article
• Language: English
• Subjects: College students; Financial literacy; Financial planning; Personal finance; Sociodemographics
• ISSN: 2277-9752; 2321-029X
• DOI: 10.1177/2277975216667096

A person’s capability to manage financial matters has become important in today’s world. Availability of different types of sophisticated financial products coupled with the complexity and increased uncertainty of the economy and financial markets have generated a strong move to measure and study financial literacy among investors. The present article aims to analyze the status of financial literacy of college students with three identified antecedents, namely, socio-demographic characteristics, parental influence and attitude towards financial planning. A sample of 425 students from various colleges of the Hyderabad–Secunderabad region was studied to understand the role of the identified antecedents on financial literacy. The results of logistic regression analysis support the hypothesis that financial literacy of Indian college students is influenced by their socio-demographic characters, parental influence and their attitude towards financial planning. While both socio-demographic and parental influences have a positive impact on financial literacy, attitude towards financial planning is observed to have a negative impact.