Socio-Demographics Determinants of Financial Literacy: Evidence from Sivagangai District

Financial literacy represents a critical determinant of economic well-being and community development, particularly in developing economies where financial inclusion remains a policy priority. This study employs a mixed-methods approach to examine financial literacy disparities between rural and urban populations in Sivagangai district, Tamil Nadu, through behavioral economics and social learning theory ‎frameworks. Data was collected from 200 strategically selected respondents (100 rural, 100 urban) using structured surveys and semi-‎structured interviews. The research reveals substantial literacy gaps: urban respondents demonstrated 92% bank account awareness compared to 78% rural, with digital banking usage showing the widest disparity (88% urban vs. 39% rural). Key barriers identified include ‎inadequate formal education (rural mean: 4.42), low digital literacy (4.50), and cultural constraints (3.98). Post-intervention analysis confirmed the effectiveness of targeted awareness programs, with both groups showing significant improvement (p < 0.001). The study con-‎contributes to financial inclusion literature by demonstrating how socioeconomic stratification intersects with geographic location to create com-‎compounding literacy disadvantages. Theoretical implications extend behavioral economics research by showing how information asymmetries ‎and cognitive biases differently affect rural versus urban financial decision-making. Policy recommendations include curriculum integration, ‎vernacular content development, and community-based peer education programs tailored to local contexts‎.