An Empirical and Critical Analysis of Financial Literacy in Personal Finance and Its Relationship with Socio-Economic Variables in Vidarbha

Abstract

Financial literacy has also become a relevant topic in identifying the financial decisions, saving pattern, investing behavior, and financial health of individuals. This study will be an effort to conduct an empirical research into the level of financial literacy among the population in the Vidarbha region and the relationship it carries with socio economic factors such as age, gender, education, income and occupation among others will be critically assessed. The survey questionnaire was designed and representative sample was provided to respondents in the rural areas and in the urban area of Vidarbha. To determine the relationship specified between the socio-economic determinants and financial literacy the correlation analysis, the descriptive statistics, and regression models were employed. These findings indicate that differences in financial literacy levels based on education, income and occupation are enormous and therefore there is need to implement certain financial education programs. In addition, the research article has placed trust in financial literacy as one of the most important factors in enhancing informed financial choice, reduced financial vulnerability, and sustainable financial inclusion in the region. In order to address the existing gaps in knowledge, policy implications and recommendations on the efforts of increasing financial awareness are discussed.