Analysis of Financial Literacy and Financial Inclusion among Salaried Employees in Tamil Nādu

Abstract

Financial Literacy is an important adjunct in promoting financial inclusion and financial stability, in this study, the authors evaluate survey responses to standard questions used to measure financial literacy, data have been compared and analyzed based on demographic and sociographic factors. The following factors have been examined in the research preference to devise a budget, knowledge of available investment avenues, investment preferences, factors considered before the investment, tolerance of risk, and confidence while performing financial transactions, etc. from the analysis we find that men are more financially literate compared to women, respondents are more confident while performing basic financial transactions and investing in basic financial products, investments preferences that yield high returns but involves high risks like shares, mutual funds, real estates, cryptocurrencies, and bitcoins are seemed to be very less. The government must take initiatives to make the people more financially literate as there persists a gap in the financial literacy level of men and women. Hence, more financial literacy programs should be introduced, and new universities should be established to make people more literate.