IMPACT OF SOCIO-DEMOGRAPHIC AND EDUCATIONAL FACTORS ON FINANCIAL LITERACY IN YOUNG ADULTS
DOI:
https://doi.org/10.69980/8zv99c46Keywords:
Financial literacy, young adults, socio-economic factors, demographic factors, non-parametric testsAbstract
This research analyzes 1230 respondents from 4 North Indian states using nonparametric statistics (Mann–Whitney U test and Kruskal–Wallis H test) to evaluate how age, gender, education, wealth, formal financial education, and workshop participation determine financial literacy. Results of partial correlations showed that there was no age effect in participants aged 18-29 (rb = 0.023, p = .426). It is interesting to note that females had greater financial literacy than males (rb = 0.072, p = .013), contradicting global trends. Financial workshops were the most significant predictor (rb = 0.152, p < .001), followed by formal finance education (rb = 0.090, p = .002). The income findings indicated that high-income participants outnumbered both the no-income and low-income groups, supporting a threshold effect. Professional or advanced qualifications showed significantly higher financial literacy than postgraduate degrees (rb = 0.216, p < .001). These results are consistent with consumer socialization theory and indicate that interventions using more experiential, workshop formats may be more effective than traditional classroom-based teacher instruction for improving young adults' financial literacy, especially among lower-income groups.
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