Role of Financial Education in Shaping Financial Behavior of Young Adults: An Empirical Study

Abstract

As young adults of contemporary era, marked by revolutionizing financial technology, traverse through the existing complex financial landscape, the role of financial education in guiding them comprehend the financial practices become paramount for ensuring the economic well-being of the society. Financial education that helps the youth understand and gain knowledge on effective and strategic financial measures not only pave the foundation for long-term responsible financial behavior but also empowers the individual by allowing them to effectually apply their knowledge on conducting fruitful day-to-day financial activities. Young adults often find themselves grappled among various financial situations that encompass student loans, debt management, savings, earning of personal income etc. and often fail to practice proper financial engagement that result in potential engagement of risky economic behaviors. Financial education programs which increase the confidence in financial decision-making by impacting investment, savings, debt and credit management behavior hence contribute to the long-term financial security of these young adults. By conducting extensive research on this arena helps policymakers and financial educators develop an intense framework that delve into ways of imparting and expanding effective financial education to young adults, thereby contributing to the economic well-being of the society. Study survey was conducted among 223 young adults to know the role of financial education in shaping financial behavior of young adults and the impact of financial education on their financial behavior and concludes that there is significant impact of financial education on financial behavior of young adults.