Financial Literacy and Personal Finance Decisions

Abstract

The study attempts to report the influence of demographics on financial literacy and to assess the impact of the latter on different personal finance decisions. Using cross-sectional research design, a survey through interview-schedule comprising of 50 questions have used to collect data from randomly chosen 120 sample respondents of Dharmanagar, a town of North Eastern Indian state of Tripura. The data have tested for its reliability and validity by a pilot study before the final execution. Different parametric tests have applied to test the null hypotheses. The empirical results have documented that different demographics have significant influence in financial literacy which, in turn, has significantly influenced the personal finance decisions. Policy relevance has drawn and the study has acknowledged few shortcomings before generalising the results and has indicated the road map for future studies.