A Study on Factors Influencing Financial Literacy of Youngsters with special reference to Tamilnadu State of India

Abstract

Financial literacy is the fundamental knowledge for any human being to protect themselves from financial mistakes and economic shocks. It helps an individual to take planned risks, making right financial investment and to lead financially secured life. Global Financial Literacyindex indicates that India ranks 23rd out of 28 markets in terms of Global financial literacy. All India financial literacy and inclusion report (2014) also proved that 80% of the Indians are financially illiterate in India. This study explores the factors influencing college students financial literacy in Tamilnadu state of India. The modified model of Jergenson and Savla (2010) which was used in Family resource management theory as a base theory and has been used in this research. The results reveal that college Students financial behaviour is positively influenced by their financial knowledge. In addition to that financial knowledge of college students are positively influenced by their parents.