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Asian Journal of Management
Year : 2020, Volume : 11, Issue : 4
First page : ( 507) Last page : ( 516)
Print ISSN : 0976-495X. Online ISSN : 2321-5763.
Article DOI : 10.5958/2321-5763.2020.00075.X

Basic financial literacy: A comparative study at Delhi NCR

Chhillar Neetu1, Arora Swaranjeet2

1Research Scholar at Northcap UniversityGurugram, HaryanaIndia

2Associate Professor at Northcap UniversityGurugram, HaryanaIndia

*Corresponding Author E-mail: neetudabas0203@gmail.com

Online published on 11 February, 2021.

Abstract

Basic Financial literacy refers to the basic financial knowledge about budgeting, interest rates, time value of money, inflation, debit-credit, money management, investment, banking products, risk-return, etc. Lack of basic financial knowledge leads to ineffective financial decision making and loses. Factors that influence basic financial literacy level are demographic factor, socio-economic factors, education level, workplace activity, etc. Some of these factors may dominate in certain cases while they may not be significant in other situation. Understanding the impact of such factors on the basic financial awareness level among people is essential for effective policy making. Hence present study is aimed at exploring basic financial literacy level among people of Delhi NCR. The online survey was carried out with questionnaire as the research instrument on a sample of 326 people from Delhi NCR region using convenience sampling technique. The collected data was analyzed using Non-Parametric test of independent samples Kruskal-Wallis test and Mann-Whitney U test. The study identified that there is a significant difference in the basic financial awareness among different age groups while the basic financial literacy level across gender, employment status and education level were found to be not significantly different.

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Keywords

Basic financial literacy, Financial decision making, Effective policy making, Demographic factor, Socio-economic factors, Education level.

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