AN EMPIRICAL STUDY ON IMPLICATIONS OF FINANCIAL LITERACY ON FINANCIAL WELL-BEING

Abstract

The study aimed to assess the level of financial literacy among individuals in Delhi. The implications of financial literacy on financial well-being were analysed. Financial literacy was measured using three dimensions: financial attitude, financial knowledge and financial behaviour. An attempt was also made to identify financial knowledge under/overconfidence. The relationship between various socio-demographic factors with financial literacy and financial well-being was also analysed after investigation. The primary data was collected and analysed using statistical tools such as percentage analysis, t-test, ANOVA, linear multiple regression analysis, and chi-square analysis and finally, a Structural equation model was constructed to understand the impact of financial literacy on financial well-being. The analysis uncovered some significant findings, which are summed up in this paper. Various areas of concern are also identified and suggestions are offered to improve financial literacy and enhance financial well-being.