Financial Literacy Levels amongst Salaried Women: Do they have a Bearing on their Financial Behaviour?

Jump To References Section

Authors

  • Ravneet Kaur
     Ph.D. Research Scholar, School of Management and Commerce, RIMT University, Mandi Gobindgarh, Punjab – 147301 ,IN
  • Rajiv Kumar Maheshwary
     Professor cum Dean, School of Management and Commerce, RIMT University, Mandi Gobindgarh, Punjab – 147301 ,IN

DOI:

https://doi.org/10.18311/jbt/2021/27171

Keywords:

Demographics, Financial Behaviour, Financial Literacy, Salaried Women

JEL classification

, D14, G40, G41, G50, G53
Behavioural Finance, Financial Literacy

Abstract

The introduction of a wide array of financial instruments, alongside increased complexity has rendered it crucial for financially vulnerable groups like women to understand the real premises on which they are centered as opposed to being simply aware of them. The study using statistical tools including Descriptives, ANOVA, Chi-Square, Factor analysis conducted during October 2020 - January 2021 assessed financial literacy levels among salaried women in Ludhiana City and its effect on financial behaviour, found the average financial literacy score to be 68%, being higher than OECD financial literacy survey score of 60.48%. Additionally, financial literacy had significant effect on respondents’ subsequent financial behaviour.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

Downloads

Published

2022-08-18

How to Cite

Kaur, R., & Maheshwary, R. K. (2022). Financial Literacy Levels amongst Salaried Women: Do they have a Bearing on their Financial Behaviour?. Journal of Business Thought, 12(1), 49–61. https://doi.org/10.18311/jbt/2021/27171

Issue

Volume 12, April 2021 - March 2022

Section

Articles

License

All the articles published in JBT are distributed under a creative commons license. The journal allows the author(s) to hold the copyright of their work (all usages allowed except for commercial purpose).
Crossref
Scopus
Google Scholar
Europe PMC
Received 2021-02-22
Accepted 2021-07-13
Published 2022-08-18

 

References

Outlook India. The Importance of Financial Literacy among Women in Today’s Time. 2019. Available at https://www.outlookindia.com/outlookmoney/talking-money/ the-importance-of-financial-literacy-among-women-in-todays-time-2895

Kumar S & Anees M. Financial literacy and education: Present scenario in India. International Journal of Engineering and Management Research. Dec 2013; 3(6):83–7.

Agarwalla SK, Barua SK, Jacob J, Varma JR. Financial literacy among working young in urban India. Indian Institute of Management Ahmedabad, WP. 10 Oct 2013; 10(2013-10):02–27.

Warsono W. Prinsip-Prinsip dan Praktik keuangan Pribadi (The Principles and Practice of Personal Finance). Jurnal Salam. Jan 11 2011; 13(2).

Ortiz-Ospina E, Tzvetkova S, Roser M. Women’s employment. Our World in Data. Mar 24 2018.

Allianz Life, 2019. For women, rising social power is not coinciding with a rise in financial confidence. [online] Allianz Life Insurance Company of North America, p.2. Available at: <https://www.allianzlife.com/-/media/files/ allianz/pdfs/newsroom/2019-women-money-and-powersummary-sheet.pdf> [Accessed 6 December 2020].

Lusardi A, Tufano P. Debt literacy, financial experiences, and over indebtedness. Journal of Pension Economics & Finance. Oct 2015; 14(4):332–68.

Atkinson A, Messy FA. Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study. 2012.

Sabri MF, Juen TT, Othman MA, Rahim HA. Financial literacy, financial Management practices, and retirement confidence among Women working in government Agencies: A mediation model. The Journal of Developing Areas. 2015; 49(6):405–12.

Weiss C, Parkinson D, Duncan A. Living longer on less: women, paid work, and superannuation in Victoria, Australia. SAGE Open. Jul 24 2015; 5(3):1c12. https://doi.org/10.1177/2158244015597966.

Klapper L, Lusardi A, Van Oudheusden P. Financial literacy around the world. Standard & Poor’s Ratings Services Global Financial Literacy Survey. Washington: Standard & Poor’s. 2015.

Allgood S, Walstad WB. The effects of perceived and actual financial literacy on financial behaviors. Economic inquiry. 2016 Jan; 54(1):675–97.

Alhenawi Y. Financial literacy of US households: Knowledge vs. long-term financial planning. Financial services review. 2013; 22.

Zulaihati S, Susanti S, Widyastuti U. Teachers’ financial literacy: Does it impact on financial behaviour? Management Science Letters. 2020; 10(3):653–8.

Clark R, Lusardi A, Mitchell OS. Employee financial literacy and retirement plan behavior: a case study. Economic Inquiry. Jan 2017; 55(1):248–59.

Bateman, H., Louviere, J., Thorp, S., Islam, T., & Satchell, S. Investment decisions for retirement savings. The Journal of Consumer Affairs. 2017; 44(3):463–82.

Lusardi A. Financial literacy: an essential tool for informed consumer choice? National Bureau of Economic Research. Jun 19 2008.

Murendo C, Mutsonziwa K. Financial literacy and savings decisions by adult financial consumers in Zimbabwe. International journal of consumer studies. 2017 Jan; 41(1):95–103.

Dwivedi M, Purohit H, Mehta D. Improving financial literacy among women: The role of universities. Economic Challenger. Sep 30 October-December. 2015.

Shobha TS, Shalini S. A study on the perception of women towards financial planning in the city of Bengaluru. Asia Pacific Journal of Research. 2015; 1(30):14–21.

Ameriks J, Caplin A, Leahy J. Wealth accumulation and the propensity to plan. The Quarterly Journal of Economics. Aug 1 2003; 118(3):1007–47.

Lusardi A, Mitchell OS. Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth. Journal of Monetary Economics. Jan 1 2007; 54(1):205–24.

Bucher-Koenen T, Lusardi A. Financial literacy and retirement planning in Germany. National Bureau of Economic Research. 2011 Jun 9.

Van Rooij M, Lusardi A, Alessie R. Financial literacy and stock market participation. Journal of Financial Economics. Aug 1 2011; 101(2):449–72.

Stango V, Zinman J. Exponential growth bias and household finance. The Journal of Finance. Dec 2009; 64(6):2807–49.

Disney R, Gathergood J. Financial literacy and consumer credit portfolios. Journal of Banking & Finance. Jul 1 2013; 37(7):2246–54.

Gathergood J. Self-control, financial literacy and consumer over-indebtedness. Journal of Economic Psychology. Jun 1 2012; 33(3):590–602.

Christiansen C, Joensen JS, Rangvid J. Are economists more likely to hold stocks?. Review of Finance. Jan 1 2008; 12(3):465–96.

Guiso L, Jappelli T. The role of intuition and reasoning in driving aversion to risk, aversion to ambiguity and regret. Mimeo. 2008.

Abreu M, Mendes V. Financial literacy and portfolio diversification. Quantitative finance. May 1 2010; 10(5):515–28.

Morrin M, Broniarczyk S, Inman JJ, Broussard J. Saving for retirement: The effects of fund assortment size and investor knowledge on asset allocation strategies. Journal of Consumer Affairs. Jun 2008; 42(2):206–22.

Dulebohn JH, Murray B. Retirement savings behaviour of higher education employees. Research in Higher Education. Aug 2007; 48(5):545–82.

Grable JE, Park JY, Joo SH. Explaining financial management behaviour for Koreans living in the United

States. Journal of Consumer Affairs. Mar 2009; 43(1):80–107.

Hilgert MA, Hogarth JM, Beverly SG. Household financial management: The connection between knowledge and behaviour. Fed. Res. Bull.. 2003; 89:309.

Perry VG, Morris MD. Who is in control? The role of self?perception, knowledge, and income in explaining consumer financial behaviour. Journal of Consumer Affairs. Sep 2005; 39(2):299–313.

Howlett E, Kees J, Kemp E. The role of self?regulation, future orientation, and financial knowledge in long?term financial decisions. Journal of Consumer Affairs. Jun 2008; 42(2):223–42.

Robb CA, Sharpe DL. Effect of personal financial knowledge on college students’ credit card behaviour. Journal of Financial Counselling and Planning. 2009; 20(1).

Mandell L, Klein LS. The impact of financial literacy education on subsequent financial behaviour. Journal of Financial Counselling and Planning. 2009; 20(1).

Delafrooz N, Paim LH. Determinants of financial wellness among Malaysia workers. African Journal of Business Management. 2011 Oct 14; 5(24):10092–100.

Joseph F. Hair, Barry J. Babin, Rolph E. Anderson, William C. Black. Multi variate data analysis. Cengage Learning India. 2018.

OECD. OECD/INFE 2020 international survey of adult financial literacy.

Financy. Women are more financially vulnerable than men. 2020. Available at https://financy.com.au/women-are-more-financially-vulnerable-than-men