Financial Literacy among University Students: A Study of Guru Nanak Dev University, Amritsar, Punjab

Abstract

India is a developing country and is amongst the world’s most efficient financial markets in terms of technology, regulation and systems. It has one of the highest savings rate in the world. While the saving rate in India is good but where these savings are invested is a cause of concern. The majority of Indian households do not use modern financial market instruments. Improved levels of financial literacy of the citizens is required in order to convert India into a nation of investors from a nation of savers. It is only through financial education that people improve their understanding of the financial products and services and ensure a lifetime of financial well-being. The ‘catch them young’ strategy for financial education initiatives undertaken in India seeks to be an effective platform for disseminating financial education by creating awareness among the young student community across the country. Therefore, the current study is an attempt to examine the level of financial literacy of university students and to find out the impact of various demographic variables on the financial literacy of these students. For the purpose of the current study, data were collected from primary sources on the basis of a questionnaire designed by Lusardi, Mitchell & Curto ( 2006 ). To analyse the collected data, descriptive statistics, independent sample t-test and one-way analysis of variance (ANOVA) have been employed. The study concluded that the financial literacy level of the university students with a commerce and management background is fairly good and has nothing to do with their demographic profile. In fact, it is the curriculum that is helpful in addressing the issue of financial literacy among students. Therefore, introducing financial and economic concepts in the courses (interdisciplinary courses) is needed in order to enable the students of various disciplines to deal in financial products and services.