A STUDY OF FINANCIAL BEHAVIOUR AND LITERACY AMONGST THE COLLEGE STUDENTS IN MUMBAI

Vijetha Shetty, Jaison Baby Thomas

Abstract


Post global financial crisis, Financial Literacy and Financial Inclusion has become a subject of considerable interest among policy makers, researchers and other stakeholders. This heightened interest reflects a better understanding of the importance of financial inclusion for economic as well as social development. Across the nations, both economically rich and fiscally poor, it is being increasingly recognized that access to financial services has a critical role in reducing extreme poverty, boosting shared prosperity, and supporting inclusive and sustainable development. Similarly, financial literacy is rapidly being recognized as a core skill, essential for consumers operating in an increasingly complex financial landscape. It is therefore no surprise that governments around the world are interested in finding effective approaches to improve the level of financial literacy amongst their population and that many are in the process of creating and implementing a national strategy for financial education to provide learning opportunities throughout a person’s life.

 

College students are at a decisive time in their lives as they move from financial dependence to financial independence. For a majority of students, the first year of college is viewed as an important transitional stage in which parental supervision and oversight are reduced and students begin to achieve some degree of financial autonomy. When they go to college, many students are confronted with financial responsibilities such as paying bills, creating a budget, and using credit for the first time in their lives. How well they cope with these challenges depends in part on the financial knowledge and behaviors they acquired prior to arriving at college (Lyons, Scherpf, & Roberts, 2006).

Demographic factors like family, number of dependents, mother’s education, financial advice etc. The need to know the level of financial literacy of various groups is inevitable. This study focuses on measuring the level of financial literacy among the college students and the family factors, which affect the same.