Exploring Financial Literacy: A Study of Socioeconomic Factors

Abstract

This research project examines the relationship between socioeconomic factors and financial literacy among individuals in India. The study utilizes primary data collected through structured questionnaires from a diverse sample of respondents engaged in personal finance management. Descriptive analysis reveals that the average age of respondents is 24.4 years, with a wide range of income levels ranging from ₹0 to ₹200,000. Inferential analysis, including correlation and regression, indicates a significant positive correlation between income levels and financial literacy ratings. Furthermore, younger individuals and those with higher education and income levels exhibit better financial literacy. Based on these findings, the study recommends targeted financial education programs, early financial literacy initiatives, income-related interventions, and continuous learning opportunities to enhance financial literacy and promote economic stability in India. This research contributes to the understanding of the determinants of financial literacy and provides insights for policymakers, educators, and financial institutions to develop effective strategies for improving financial well-being in the Indian context.