An Analytical Study of Financial Literacy and its Determining Variables: A Multiple Regression Modeling Approach

Measuring and evaluating the level of financial literacy is very significant to strengthen the economy and financial system for a particular country. The goal of financial inclusion is also very significantly depends on the level of financial literacy in the society. Such an important role of financial literacy calls for the identification and measurement of a model which evaluates various indicators and factors that create a level of financial literacy; essential for financial inclusion. The present study is an effort to identify and measure various variables as independents that affects the level of financial literacy which is a dependent variable. This study also reveals that how the overall level of financial literacy is very positively influenced by the combined effects of all six factors together. The present study can also be carried out in the future by considering the effects of various demographic variables as determinants as well as moderators between financial literacy and financial inclusion.