Analysis of Financial Literacy Level Among Undergraduate Students

Ume-Tayyba Jadoon ,Saifullah Abro ,Ossam Chuhan ,Syed Adnan Ali Shah

doi:10.7176/rjfa/11-14-03

Abstract

Financial literacy has become all the time important for the economic development of a country as well as individuals for the use of economic securities. This study aims to concentrate undergraduate for understanding the need of financial literacy in the educational system according to the current situation of our society. We concentrated on the undergraduate level of financial literacy. Nowadays student financial problems are alarming. Throughout the study, they are failed to manage their financial issues. The outcomes and conclusions of this study were obtained through a questionnaire survey in undergraduate institutes. The study examines the link between financial literacy and those demographic issues that affect student financial literacy. For the purpose of an investigation, we distributed 250 questionnaire forms to random students and collect 230 from which 140 forms filled properly. The finding shows the introduction of financial literacy at an early level for the student is necessary. There is a need to reform the institutional structures to improve the capabilities of high school students and strategies that are needed to initiate financial literacy educational growth in developing areas. Additionally, due to high ratio of unemployment, they are unable to have financial experiences that affect their financial knowledge and behavior. Increasingly in the region, they have a very little approach to grow. Keywords: Financial literacy; Demographics; Chi-Square distribution; undergraduate students. JEL codes: G53, A22, C12, R51 DOI: 10.7176/RJFA/11-14-03 Publication date: July 31 st 2020

Highlights

Financial literacy becomes more important due to the rapid growth of financial instruments in the financial market
There is space for groundwork in terms of research on the focus matters and the production of new policies so they can help the individual in further life in financial decision making ( Mabula. and ping. 2018).Understanding basic economic and financial concepts is the main skill for customers and depositors who want to make the right choices to achieve their economic resources over their life cycle and who contribute to fast-evolving financial markets (Fornero. and Prete. 2019)
Focusing on the observed evidence regarding the Big Three questions, we document that the level of financial literacy is generally rather low and we find substantial differences between national economies and demographic associates

Summary

Introduction

Financial literacy becomes more important due to the rapid growth of financial instruments in the financial market. The basic knowledge of financial instruments essential to stand in an economy or a financial market. Due to less awareness of financial knowledge, less experience of financial products or services individual is facing a financial crisis. These situations are problematic for individuals, for a group of individuals may be for the economy. To face these challenges there is a need to reform the recognized institutional outlines to improve capabilities and strategies for promoting financial literacy in developing economies. There is space for groundwork in terms of research on the focus matters and the production of new policies so they can help the individual in further life in financial decision making ( Mabula. and ping. 2018).Understanding basic economic and financial concepts is the main skill for customers and depositors who want to make the right choices to achieve their economic resources over their life cycle and who contribute to fast-evolving financial markets (Fornero. and Prete. 2019)

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Results

Conclusion