Financial Literacy and Savings Behavior in India: An Analytical Study of Trends, Determinants, and Policy Implications
Abstract
Financial literacy is a vital factor in shaping financial decisions of individuals and is more pertinent in developing economies like India. The paper examines the relationship between financial literacy and savings behavior of households in India. It explores how financial literacy affects savings and investment behavior and impacts financial well-being. The study also explores the impact of demographic factors, digital transition, and financial inclusion initiatives on financial behavior of individuals. The study uses the secondary data available in form of research papers, reports, and surveys to explain the issue of financial illiteracy in India despite increased access to financial services across regions and demographic groups. The study finds a strong correlation between financial literacy and savings behavior of individuals and establishes that lack of financial awareness results in less savings, higher debt and poor financial decisions. The paper ends with policy recommendations to enhance financial literacy and savings behavior in India.
Authors
Hemchandra Sati, Shreya, Sonu Kumar, Suman Raj, Sumit Kumar, Surjeet Kishor
Institution
Noida Institute of Engineering & Technology (MCA Institute), Greater Noida, India
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