Published Online:January 2025
Product Name:The IUP Journal of Applied Economics
Product Type:Article
Product Code:IJAE030125
DOI:10.71329/IUPJAE/2025.16.1.48-84
Author Name:Vikas Kumar
Availability:YES
Subject/Domain:Economics
Download Format:PDF
Pages:48-84
This study examines how financial literacy affects salaried women’s money management in India using 500 respondents. A substantial association was discovered between financial literacy and financial habits. Financial literacy is a powerful predictor of financial habits, with age group differences indicated by ANOVA. Advanced techniques like SEM and HLM showed the strength of these correlations. SEM showed that financial literacy positively affects management practices, whereas HLM showed differences in financial behaviors between urban and rural respondents. The study recommends that financial institutions should offer inclusive budgeting, savings, and investing services to empower rural women by addressing gaps in financial literacy.
The capacity of individuals to achieve economic stability and make well-informed financial decisions is influenced by their level of financial literacy. Lusardi and Mitchell (2014) define financial literacy as comprehending budgeting, saving, investing, and debt management to make sound financial decisions.