IMPACT OF FINANCIAL LITERACY ON FINANCIAL ATTITUDE AND FINANCIAL BEHAVIOR OF INDIVIDUAL IN INDIA

Dr. Varinderjeet Singh

Assistant Professor, University Institute of Commerce and Management, Sant Baba Bhag Singh University, Jalandhar

Dr. Navdeep Aggarwal

Professor, School of Business Studies, Punjab Agricultural University, Ludhiana

ABSTRACT

The purpose of the study is to assess the awareness of individual about financial concepts such as money management, financial products, stock markets, numeracy, risk – return trade off, insurance, personal finance, budgeting and investment etc. Also the study aims at finding out whether there is any significant relationship between financial literacy level of the individual regarding their financial attitude and financial behavior of individuals. The authors find low level of financial literacy among individuals though all of them are financially included. As much as 60.80 percent individuals had poor financial literacy and 15.4 percent had fair financial literacy. Even in terms of different dimensions of financial literacy such as interest, compounding, inflation, time value of money or basic financial principles, individuals largely had poor or fair financial literacy. Study also shows that positive financial behavior’s people shows their higher financial literacy and negative financial attitude’s people shows their lower level of financial literacy.

Keywords: Financial Literacy, Financial Attitude, Financial Behavior.