Determinants of rural household financial literacy: Evidence from south India

Abstract

The purpose of this paper is to investigate the study of rural household's financial literacy. Financial literacy is understood as the set of knowledge, attitudes, and behaviors, which has assumed a fundamental role in allowing and enabling people to make responsible decisions as they strive to attain financial wellbeing. In this research, the researcher throws a descriptive research design to explore the relationship between variables. Respondents were obtained from 126 households in rural areas of Tamil Nadu and data was collected using the stratified sampling method. The current study found that education, marital status, type of family and banks relationship were positively related to financial literacy. However, age, gender, occupation, and No.of dependents are not significantly correlated with financial literacy. There is a positive association between financial literacy and banks, banks must actively involve in re-designing educational programs, workshops, training methods on financial issues for all the levels of people in rural areas. It is believed that such a step taken forward will help banks in helping people reach a better financial condition.