Measuring the Financial Literacy Level among Working Youth in Punjab

Enhancing financial knowledge about the new products and services in the financial markets is an essential for the middle and lower-middle income groups of people who are participating in these markets either as savers or borrowers or both. Financial literacy is required to face market competitions, increase market efficiency and to regulate regulatory intervention. With the development of the financial markets in India, the individuals need to have capacity and the confidence to make informed financial decisions thus underlining the importance of financial literacy (Kaur et al., 2015). The purpose of this paper is to analyse the financial literacy level among working youth in Punjab. This study also examines the influence of various demographics variables on financial literacy of youth. The authors used survey method and collected data from 300 working youth in Punjab. A modified questionnaire has been developed to measure the financial literacy and assess the influence of various demographics variable on financial literacy. A judgmental sampling technique was used. The study reveals that the financial literacy among youth in Punjab is fairly good. Also, it has been observed that various demographics variables such as gender, occupation, education, income influence the level of financial literacy. This study would help in adopting appropriate strategies to improve the level of financial literacy amongst youth.