A Study on the Impact of Financial Literacy on the Financial Behaviour of College Students

Abstract

Financial literacy is increasingly vital as it has become essential that individuals acquire the skills to be able to survive in modern society and cope with the increasing diversity and complexity of financial products and services available. Financial literacy is the ability to take effective and sound decisions regarding the use and management of money. In the current era, no one can deny the importance of proper decision-making in the finance sector. If someone is not having enough financial literacy, how can he or she plan for a secure future! Especially when we talk about financial literacy among the students it is always a big matter because ultimately, they are the future of the country. The main objective of the study is to analyse the impact of financial literacy on the financial behaviour of college students. And also, the study examines the level of financial literacy among college students in India by evaluating the influence of various demographic factors like gender, type of courses, and income. The demographic, as well as financial behaviour and financial literacy, are the variables used in this study. Regression proved that there is a statistically significant influence of financial literacy on the financial behaviour of the students. And also, the demographics of student a has a significant relationship with financial literacy.