An Empirical Study on the Effect of Financial Behaviour, Financial Attitude, and Financial Knowledge on the Financial Literacy of Rural Households in Karnataka

When it comes to permitting and empowering individuals to make rational decisions as they work to achieve financial well-being, financial literacy is seen as a collection of skills, attitudes, and behaviours. Therefore, the objective of this research is to examine the financial literacy of rural households. The descriptive research design is utilised in this research to determine the correlation between variables. The study employed the stratified sample approach to collect data, with a total of 360 samples gathered from rural families in the state of Karnataka. This study found that there is no relationship associated between financial behaviour and with financial literacy of Karnataka’s rural households. Financial literacy of rural households can be strengthened by influencing positive financial attitudes and knowledge. The study offers insightful policy recommendations to promote financial literacy, such as offering financial education to citizens to increase their awareness of financial matters, which further aids in improving household financial decision-making. It is anticipated that taking such a move will assist banks in helping customers improve their financial situation.