The Financial Literacy of College Students: Evidence From India

Abstract

This article attempts to assess the financial literacy of college students in India through the application of a questionnaire. The OECD/INFE Toolkit for Measuring Financial Literacy was employed to collect primary data from a random sample of 400 active university students, using financial behavior, financial knowledge, and financial attitude as variables. Data was analyzed by descriptive statistics using SPSS. This study finds that the Indian students surveyed have low financial literacy, with a score of 11.82 on a scale of 21. Students have very low awareness of compound interest, the erosion of buying power due to inflation, the benefits of diversification, and the use of credible information for financial decision-making. Financial literacy is indispensable for making proper financial decisions and financial education is important for students. Increased financial literacy will result in less financial concern and greater financial wellbeing. Keywords: Financial literacy, Financial wellbeing, College students.