A Study of Dimensions of Financial Literacy and its Relationship with Household Savings and Investment

Abstract

Introduction newlineThe development and growth of the Indian economy and the expansion of financial markets post industrial policy have resulted into tremendous growth of financial products as an investment alternative. The increasing complexity and available choices of financial products, shift of providing social security from government to individuals, growing importance of planning for retirement have made it compulsory to provide financial literacy at all levels for the countries as the low level of financial literacy prevents people making a judicious choice in regard to their financial decisions and consequently render them incompetent to select most appropriate investment alternative to beat the prevalent inflation rate of economy. In the developing countries it could be treated as first step towards alleviation of poverty and development. newlineOperational Definition of Financial literacy newlineFinancial literacy comprises of skills and knowledge that enables the individual to understand, firstly, the principles of finance that an individual requires to know to make informed financial choices and decisions and secondly, the financial products that influence the financial well-being of an individual. newlineObjectives newlineand#61623; To assess the levels of Financial Literacy. newlineand#61623; To study the determinants of Financial Literacy. newlineand#61623; To study the relationship between Financial Literacy and Household Savings. newlineand#61623; To study the relationship between Financial Literacy and Investment. newlineResearch Methodology newlineFor the present study exploratory and descriptive designs of research have been used. The sources used are both primary as well as secondary. For the present study, non-probability convenient sampling is chosen to collect primary data using a questionnaire. The individuals of Delhi and NCR (Noida and Ghaziabad) are considered as the population for the study, the considered sample size is 450 individuals of Delhi and NCR as out of 500 filled questionnaires only 450 found to be useable. To get deep insights into the area of research, the secondary source of data