The impact of demographics and socioeconomic factors on financial literacy: a study of India

Financial literacy plays a vital role in developing financially smart individuals. Both at the individual level as well as for the society at large, financial literacy is very crucial to wiser financial planning and wellbeing. Indian citizens are yet to give priority to financial literacy. Being in a condition where 76% of the grown-up populace in India does not even understand essential monetary ideas, the need of great importance is to relook at the approach of Indian households towards making reserves and investments. The goal of this paper is to investigate the current level of financial literacy among the Indian population and identify the major determinants of financial literacy. This paper aims to highlight whether there exists interdependency between demographic, socio-economic determinants and the financial literacy levels of Individuals in India. The paper will also contribute to the existing literature on financial literacy among Indian citizens by using a rigorous methodology.