In the Midst of Digital Economy: The Level of Financial Literacy Amongst Millennials in Delhi City

In the Midst of Digital Economy: The Level of Financial Literacy Amongst Millennials in Delhi City

Neelam Tandon, Deepak Tandon
Copyright: © 2021 |Pages: 17
DOI: 10.4018/IJPAE.2021070104
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Abstract

The financial literacy of urban Indians has been a cause of concern for Reserve Bank, commercial banks, and numerous NGOs and self-help groups. Extant literature has proven that financial illiteracy and poor financial skills lead to evils such as indebtedness leading to bankruptcy filings, poverty, divorce, and depression. Keeping in mind the importance of being able to understand and handle personal finance well by millennials, the authors examined 213 Indian students pursuing a PG course in management in Delhi city. To ascertain the students' level of financial knowledge and examine whether factors like gender, education level, undergraduate area of study, income level, etc., factor analysis is conducted and five independent factors are extracted, explaining 80% of variance. Through the study, five factors determining financial literacy were found—borrowing behavior, investment behavior, financial prudence, transaction behavior, and spending behavior—in Delhi from 2014-2018.
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Importance Of Financial Literacy

The issue of financial education has acquired priority in a couple of decades or so primarily in the light of the changed financial landscape that the world has seen. While we are presented with newer options for growth, on the other hand there is anxiety, distrust and skepticism in certain quarters. With the increasing sophistication of financial market products and lack of active participation by the population in the financial environment of countries, access to financial education would increase financial knowledge, improve decision making and strengthen market participation (Greenspan, 2005; Mandell, 2009; Willis, 2008).

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