Financial literacy is the ability to judge and take effective decisions to use and manage money or personal finance. In order to take proper investment decision about the personal finance each and every students should have a strong financial literacy. Student should have proper long-term investments plans for their future for emergency needs. The main objective of this study is to judge the level of financial literacy among the college students and find out the need for the financial literacy educational program for the students to develop their skills. The study focuses on assessing levels of financial literacy of college students. The study also focus on relationship between financial literacy and demographic factors like age, gender, education. Students at college level should take proper financial decisions which will be an important influence on their personal finance after their college which will be an ultimate affect on their academic performance. Financial literacy is an intergral part of the financial inclusion. Financial literacy not only imparts financial knowledge and information but also changes once behaviour in their activities and financial pattern. Financial Inclusion ensures proper financial services to low income group at an affordable cost. Financial literacy includes skills and knowledge of an individual to take proper financial choices and decisions.
Agarwalla Sobhesh Kumar, Barua Samir, Jacob Joshy, Jayanth R. Varma (2012) conducted a study among 3000 individuals, and found that financial knowledge among Indians is very low than the International standards. But the financial behaviour and attitude of the employees and retired seems to be positive.
Studies by Marcolin and Abraham (2006); Schuchardt et al., (2008); Remund (2010) and Huston (2010) found that despite the rapid growth of interest in and funding for financial literacy and financial education programs, it remains the case that the field of financial literacy has a major obstacle to overcome: the lack of a widely disseminated measure of financial literacy, developed through rigorous psychometric analyses.
Financial Literacy is considered to be a very useful tool to all individuals specially among students to cope with financial problems.Students should learn to be confident with financial literacy to manage their personal financial.The college students should be taught and make them understand more about financial knowledge to have proper budget planning for their daily expenses.It will help them to identify the wasteful expenses and help them achieve their financial goals.Students sould develop the habit of saving at their early young age.
Financial Literacy is important among college students to initiate a savings plans,manage their savings or pocket money and make proper investment decision for their future. It is very important as financial markets have been increased very widely and complex.Each and every individual should have proper financial knowledge to choose the financial products and providers.
This study on Financial Literacy among college students results that college students should improve their personal finance knowledge inorder to survive in future. It is very important to provide financial education to all students at college level to maintain and achieve financial know-how that’s lifelong undertaking.Providing Financial education to students at college level will definitely improve their skills and knowledge and will make them to take better choices about maintain finance and safeguard them from harmful practices.