Downloads: 3
Research Paper | Management | Volume 15 Issue 1, January 2026 | Pages: 1422 - 1426 | India
Determinants of Financial Literacy among Undergraduate Students
Abstract: Financial literacy has emerged as a critical life skill in both developed and developing economies, particularly in the context of increasing financial complexity and expanding access to formal financial services. In India, where a large proportion of the population comprises young adults, understanding the financial literacy levels of undergraduate students assumes special significance. The present study examines the determinants of financial literacy among undergraduate students, with specific emphasis on socio-economic and demographic factors influencing their financial knowledge and practices. Primary data were collected from 460 undergraduate students using a structured questionnaire through convenience sampling. Financial literacy was assessed using practical indicators such as the ability to transfer money, fill bank forms, understand bank statements, and track account balances. To identify the determinants of financial literacy, multinomial logistic regression analysis was employed, with socio-economic demographic variables serving as explanatory factors. The empirical results reveal that age, gender, education level, family type, location, sources of financial learning, and usage of financial services significantly influence students? financial literacy levels. Students aged above 20 years, males, graduates, those belonging to joint families, and students enrolled in universities abroad exhibit higher levels of financial literacy. Learning money management through parents and the combined use of debit cards, banking services, and mobile transactions are also found to positively impact financial literacy. The findings further suggest that reliance on a single source of financial information is insufficient; rather, a combination of experiential learning and financial engagement enhances financial capability. The study concludes that financial literacy among undergraduate students is shaped by a multidimensional set of socio-economic factors, highlighting the need for targeted financial education initiatives within higher education institutions. Strengthening financial literacy at the undergraduate level can contribute significantly to improved financial decision-making and long-term financial well-being, thereby supporting inclusive economic development.
Keywords: Financial Literacy, Undergraduate Students, Socio-Economic Determinants, Financial Education, Money Management, Multinomial Logistic Regression, India
How to Cite?: Dhaval Ramnikbhai Thesia, Dr. Narendra Singh Chawda, "Determinants of Financial Literacy among Undergraduate Students", Volume 15 Issue 1, January 2026, International Journal of Science and Research (IJSR), Pages: 1422-1426, https://www.ijsr.net/getabstract.php?paperid=SR26123134940, DOI: https://dx.dx.doi.org/10.21275/SR26123134940