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Impact of Financial Literacy on Household Decision-Making: A Study in the State of West Bengal in India

Author

Listed:
  • Shubhra Biswas

    (Finance Officer, West Bengal State University, Barasat, West Bengal, India)

  • Arindam Gupta

    (Professor of Commerce, Vidyasagar University, Midnapore, West Bengal, India.)

Abstract

The study assesses the status of financial literacy in West Bengal and finds its impact on household decision-making of 600 respondents from eight selected districts of the state. Financial literacy of female and rural respondents is found to be lower. Higher income and education remain the other significant determinants of financial literacy. Financial literacy is found to significantly affect saving decision, investment decision, borrowing propensity and borrowing quality, the first three being positively and fourth being negatively influenced by financial literacy. However, on retirement planning no significant impact is observed.

Suggested Citation

  • Shubhra Biswas & Arindam Gupta, 2021. "Impact of Financial Literacy on Household Decision-Making: A Study in the State of West Bengal in India," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 104-113.
    • Handle: RePEc:eco:journ1:2021-05-12
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    References listed on IDEAS

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    Cited by:

    1. Rani, Mamta & Siwach, Manoj, 2023. "Financial Literacy In India: A Review Of Literature," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 11(2), September.
    2. Rani Mamta & Siwach Manoj, 2023. "Financial Literacy in India: A Review of Literature," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 16(3), pages 446-458, September.

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    More about this item

    Keywords

    Financial literacy; Household decision making; Retirement planning; Borrowing quality;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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