Measuring Financial Literacy and linking it to Demographics: A Study of Earning Individuals in Ahmedabad City, India

Abstract: This study applies an international scale to measure financial literacy among urban earning individuals in India. The responses to the combined set of questions that study both basic and sophisticated financial literacy are captured in a primary survey. The responses are converted into an index based on the average of correct answers. The financial literacy index is analysed with respect to such demographic variables as gender, age group, education, marital status, experience, annual income, and saving habits to study whether they influence the level of financial literacy. Keywords: Financial Literacy, Demographics, Gender, Education, Savings JEL Classification Number: F31, F41