Financial literacy and its determinants amongst Indian students: an empirical inquest

Purpose The present study endeavoured to assess the financial literacy (FL) of the Indian students. Efforts have also been made to unearth the socioeconomic and demographic factors affecting such FL amongst the students, which were also explored in the study. Design/methodology/approach Secondary data on 3,064 Indian students from the Financial Inclusion Insights, 2017 database was used in the study. The S&P Global Fin Lit Survey FL questions were used to estimate students’ FL. Appropriate statistical techniques and a Generalized Structural Equation Model were used to identify the determinants of such FL. Findings The outcome of the study revealed that the FL score of Indian students was found to be merely 41.2% (just above poor). Of the total sample, nearly 59.8%, 22.2% and 18% exhibited poor, moderate and high levels of FL, respectively. Region, gender, family size, economic status, level of educational attainment and active bank account status were found to be the significant antecedents of such FL. Practical implications The findings help policymakers and educational institutions design targeted FL programmes for Indian students. Originality/value Assessment of FL amongst students, especially in the context of emerging economies like India, is relatively scanty in the literature. The handful of existing studies are region- or institution-specific and therefore lack generalizability. This study makes an original contribution to the extant scholarship by exploring FL and its determinants amongst students across India using a rich database of 3,064 students holistically for the first time.