Socio-Demographic Factors and Its Impact on Financial Literacy- A Study of Hyderabad

Abstract

Financial literacy is essential for an individual’s future economic progress. The three pillars of financial literacy are knowledge, behavior and attitude. Many financial opportunities exist, particularly in the modern liberalized economy that presses upon the need for financial literacy to ensure individual’s financial well-being. The current study attempts to assess the financial literacy levels and also investigate the effects of socio-demographic factors like gender, education, age, occupation, income, family life cycle stage, nature of work and investing experience. The study uses cross tabulation and Chi-Square to study the relationship between financial literacy with the socio-demographic factors. The study highlights that gender, education, occupation, income, family life cycle, work nature, investing experience excepting age have an effect on financial literacy levels of the individuals.