Assessing the Impact of Socio-Demographic Factors on Financial Literacy of PG Management students in Hyderabad

Abstract

Financial literacy is the core of the future economic development of the individual. Knowledge in finance, attitude and behaviour are the three pillars of literacy in finance. Particularly in the liberalised economic environment, many financial opportunities are available that need adequate financial knowledge to improve individuals’ financial prosperity and well-being.  This study aims to understand financial literacy levels and to know the impact of demographic features such as gender, age, education, earnings, family education on financial literacy. A structured questionnaire is adopted to collect primary data from PG Management students in Hyderabad, divided into two sections, such as socio-demographic and literacy factors. Statistical tools such as descriptive analysis, regression, correlation, cross-tabulation, and Chi-squared test used for this study. The investigation revealed that PG management students’ financial literacy is low (33%), while male students’ literacy is higher than female. There is no or low impact of socio-demographic factors on literacy in finance except for gender.