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Financial Prudence among Youth

Author

Listed:
  • Pillai, Rajasekharan
  • Carlo, Rozita
  • D’souza, Rachel

Abstract

Frugal expenditure habit is no less important than the basic illiteracies such as reading, writing and arithmetic. Present day youth are seemed to show callous expenditure, being independent, competitive and free-of-behaviour, that eventually lead them perpetually in debt. The present study explores the magnitude of financial literacy among youth focusing on expenditure and saving trends. It is understood that the youth are unwilling to get out of their comfort zone and reckless expenditure behaviour, despite of their sound knowledge of the fundamentals of financial literacy. The credit card culture is also found out to have grown phenomenally among the youth. The freedom of choice of present generation is unlimited. Hence they are being victimized in onslaught of sales and service offers and promotions in the market especially; the lure of on-line buying, trendy apparels, electronic gadgets, mobile services and others segmented products and services. It is understood that the young generation rarely practice basic financial skills, such as budgeting, frugal spending, developing a regular savings plan, or planning for long term requirements.

Suggested Citation

  • Pillai, Rajasekharan & Carlo, Rozita & D’souza, Rachel, 2010. "Financial Prudence among Youth," MPRA Paper 22450, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:22450
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    File URL: https://mpra.ub.uni-muenchen.de/22450/1/MPRA_paper_22450.pdf
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    References listed on IDEAS

    as
    1. Chen, Haiyang & Volpe, Ronald P., 1998. "An Analysis of Personal Financial Literacy Among College Students," Financial Services Review, Elsevier, vol. 7(2), pages 107-128.
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    Cited by:

    1. Kashirina, A., 2024. "Factors influencing the choice of savings and investment instruments by generation Z: The experimental study using neuroequipment," Journal of the New Economic Association, New Economic Association, vol. 63(2), pages 144-167.
    2. Saikia, Sudarshana, 2018. "Investment Pattern of Youth in India with particular reference to Mumbai," SocArXiv gb7as, Center for Open Science.
    3. E. Bocchialini & B. Ronchini, 2015. "I divari di genere nella financial literacy: un'indagine empirica," Economics Department Working Papers 2015-EF01, Department of Economics, Parma University (Italy).

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    More about this item

    Keywords

    financial prudence; financial literacy; financial planning of youth; credit card usage; spend thriftiness; financial portfolio of youth; spending and saving habits of youth; economic independence of youth; financial decision of youth; influence of family and peer in financial management;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G00 - Financial Economics - - General - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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