Published Online:October 2025
Product Name:The IUP Journal of Applied Finance
Product Type:Article
Product Code:IJAF041225
DOI:10.71329/IUPJAF/2025.31.4.76-91
Author Name:Kakchingtabam Sapana Devi and A Rajmani Singha
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:76-91
The study is aimed at identifying the complex factors that may be responsible for the financial literacy development of individuals: the socioeconomic background, sources of learning and early introduction of financial concepts. Quantitative data for the study was gathered using a structured questionnaire and analyzed using IBM SPSS 21 by employing statistical tools such as ANOVA, chi-square test and regression analysis. The study revealed that children’s financial literacy is strongly affected by their mother’s educational attainment. Furthermore, a greater degree of learnings from parents, friends, schools, and books is also related to high level of financial discussions at home. Correspondingly, participants who readily assessed their ability to handle personal finance were intensely opposed to taking up personal finance courses. The survey outcomes indicated that parents significantly influence the development of financial literacy in their children, often utilizing various communication methods related to money at home to teach them the basics of personal finance. These insights serve as the foundation for the education campaign whose objective is improving financial literacy levels among individuals and encouraging them to make informed financial decisions from an early age.
Financial literacy is the ability to understand and manage money wisely. It includes budgeting, saving, investing, borrowing, and dealing with debt. People who are financially literate can understand financial statements, take risks into account, and plan their financial future. Basically, being financially literate means handling financial matters well and adapting to the changes in the economy smoothly, which in turn would help one to stay financially secure.