An Empirical Analysis of Inter Linkages between Financial Attitudes, Financial Behaviour and Financial Knowledge of Salaried Individuals

Puneet Bhushan ., Yajulu Medury .


Financial literacy is the ability to make informed judgments and to take effective decisions regarding the use and management of money. Past research on financial literacy had indicated that levels of financial literacy are low across the world. Various initiatives such as financial education programs are being taken by governments, organizations and agencies to improve the level of financial literacy among the population. For financial education programs to be effective they must be built around the various dimensions of financial literacy such as financial knowledge, financial behaviour and financial attitudes so that people benefit the most out of financial literacy programs. Thus in order to improve the financial literacy of the population, focus should not only be on financial knowledge and financial awareness but assessment of financial attitude and financial behaviour is also necessary. Also inter linkages between financial attitudes; financial behaviour and financial knowledge must be studied thoroughly, in order to know the relationship between different dimensions of financial literacy. The results of the study suggests that it is not only financial knowledge which shapes overall financial literacy of an individual but financial attitudes and financial behaviour of the individual has a considerable effect on overall financial literacy of an individual. Thus in order to improve the level of financial literacy amongst the population, financial education programs should not only aim at increasing financial knowledge of the population but must also focus on developing positive financial behaviour and favourable financial attitudes among the population.


Financial Literacy, Financial Knowledge, Financial Behaviour, Financial Attitudes.

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