Determinants of Financial Literacy of Adolescents in India and its Impact on their Decision-Making

Abstract

Financial literacy is an essential causational factor in the decision-making abilities among adolescents in India. The relationship between financial literacy and effectual decision-making is growing substantially, particularly in a developing country with a noticeable disparity of financial and economic knowledge access. With the liberalisation of the global economy and the contribution from India, the dissections of the factors affecting financial literacy become necessary. Income inequality, access to education and the rise of financial technological companies are such dominant determinants. This research paper investigates these determinants, emphasising the requirement of targeted initiatives to amplify the knowledge and skills about financial tools and services amongst youth and foster informed decision-making.