Assessing Financial Literacy among Indian University Students

Abstract

The research investigates Indian university students’ financial literacy levels and evaluates how financial experience and student characteristics impact their literacy knowledge. The study confirms inadequate financial literacy among students after educational promotion programs while showing many students fall short in important financial concepts. These literacies in finance remain below average due to two main factors: students not taking finance courses and a lack of finance exposure in their studies combined with demographic traits such as gender and major or industry experience. Descriptive and explanatory studies were used to examine information gathered from primary sources. Primary data from undergraduate students at four public universities in India in 2022 and 2023 were used in the study. The financial literacy skills of the students were determined by calculating the mean percentage of right answers for every question, section, and survey in total. To look into differences even more, analysis of variance (ANOVA), cross-tabulations, independent t-tests, and logistic regression were used. Chi-square tests and cross-tabulations were used to evaluate the statistical significance of the influence of financial literacy on individual beliefs, choices, and behaviors. Microsoft Excel and SPSS were used for statistical analysis to extract knowledge from the gathered data. Students must learn integrated finance lessons and experience real financial challenges through practical application of responsible financial management according to findings in the study.