International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 09 | Sep 2024
p-ISSN: 2395-0072
www.irjet.net
An Analysis of Financial Literacy and Decision-Making Among Indian Women Aged 14-46 of Ludhiana City Ryna Goyal Class 12, Sat Paul Mittal School, Ludhiana --------------------------------------------------------------------------***----------------------------------------------------------------------Abstract: Even after 77 years of Independence, financial literacy remains a greatest concern for Indian women, despite the country's progress in various sectors. According to the Humanity Welfare Council, 80% of women in India struggle with financial literacy, and around 62% do not own bank accounts or have limited access to banking services. This study assesses the financial literacy of Indian women aged 14-46 in Ludhiana, Punjab, through an online survey that garnered 52 responses from a diverse demographic group. The survey evaluated financial behaviour and knowledge across variables such as education level, marital status, age, and employment. Using both quantitative and qualitative methods, the study reveals that while women face significant gender-related challenges, they demonstrate a strong interest in achieving financial independence. Respondents suggested the integration of financial literacy into school curricula and the promotion of gender equality as key measures for improvement. This research underscores the necessity of financial skills for women to navigate today’s complex financial environment, advocating for societal investment in women’s financial education. Keywords: Investments, Financial Literacy, Gender Disparity, Financial Decision Making 1. Introduction Financial literacy is foundational to the economic growth and development of any nation. As described by Remund (2010), financial literacy refers to an individual’s capacity to understand and effectively use various financial concepts. Similarly, Hung et al. (2009) describes financial literacy as having an "understanding of fundamental economic and financial concepts, as well as the capacity to use that knowledge and other money management skills to control money wisely for a prolonged amount of time well-being." Research consistently shows a gender disparity in financial literacy, with men often exhibiting greater knowledge of financial products and markets compared to women (Nilesh, 2022). Gender differences also extend to financial decision-making, where men and older individuals, particularly those with higher levels of education and income, tend to display greater financial acumen (Hung et al., 2009). Poor financial literacy is linked to financial mismanagement in key areas such as budgeting, saving, borrowing, and investing, increasing the likelihood of adverse financial outcomes (Lusardi & Mitchell, 2011; Gal et al., 2020). Financial literacy equips individuals with the skills needed to understand inflation’s impact on purchasing power, make informed decisions about risk and return, and navigate the complexities of money management in a dynamic macroeconomic environment. However, in India, women face unique challenges that hinder their financial literacy and independence, rooted in societal norms and gender inequality. The ongoing struggle for equality in status, rights, and opportunities exacerbates these challenges, making it imperative to address financial literacy as a key factor in women’s empowerment. The education and empowerment of women are critical issues globally, particularly in developing countries like India. Despite advancements in educational attainment, women often do not translate this into financial independence or economic participation. Financial ignorance has severe consequences, leading to higher transaction fees, larger debts, and lower savings (Lusardi & Tufano, 2015; Lusardi & de Bassa Scheresberg, 2013). The failure to impart financial literacy to women not only perpetuates gender inequality but also undermines broader economic progress. This study aims to explore the impact of financial literacy on women's empowerment in India, focusing on the barriers they face and strategies to overcome them. By © 2024, IRJET
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