{"id":23724,"date":"2026-01-07T15:36:58","date_gmt":"2026-01-07T10:06:58","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23724"},"modified":"2026-01-07T15:36:58","modified_gmt":"2026-01-07T10:06:58","slug":"a-study-on-financial-literacy-and-investment-awareness-among-individuals","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23724","title":{"rendered":"A Study on Financial Literacy and Investment Awareness among Individuals."},"content":{"rendered":"

\u00a0<\/span>Title- A Study on Financial Literacy and Investment Awareness among Individuals.<\/span><\/b><\/span><\/p>\n

Authors-<\/span><\/b><\/span>Sanskriti Sanap<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Sakshi Manjrekar<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Ameya Tadwalkar<\/span><\/p>\n

Introduction-<\/span><\/b><\/span> Financial literacy plays a vital role in enabling individuals to make informed financial and investment decisions. In today\u2019s evolving financial environment, awareness of investment options, associated risks, and returns is essential for effective money management and long-term financial security. Despite increased access to financial products, many individuals still lack adequate understanding and confidence in handling investments. The present study aims to examine the level of financial literacy and investment awareness among individuals and to understand their perception towards basic financial concepts and investment decision-making.<\/span><\/p>\n

Objective-<\/span><\/strong><\/span>To understand the underlying gaps in financial literacy and investment awareness among individuals and to identify specific challenges that influence their confidence and effectiveness in making investment decisions.<\/span><\/p>\n

Literature Review-<\/span><\/span><\/b><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Lusardi and Mitchell (2014) highlighted that financial literacy significantly improves individuals\u2019 understanding of investment concepts and decision-making abilities. <\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Similarly, the OECD (2018) found that inadequate financial knowledge among students leads to low investment awareness, emphasizing the need for financial education to support informed investment decisions.<\/span><\/b><\/p>\n

Data collection-<\/span><\/b><\/span> For the above problem, 5 statements were framed on a Linkert Scale. This scale measures the intensity of agreement, typically ranging from 1(Strongly agree) to (Strongly Disagree).<\/span> For every statement, the mean, standard deviation, standard error, and t-stat were calculated. The statements are as follows:-<\/span><\/p>\n

1. I understand how investments grow money.<\/span><\/p>\n

2. I feel confident about investing.<\/span><\/p>\n

3. I can identify risky and safe investments.<\/span><\/p>\n

4. I know multiple investment options.<\/span><\/p>\n

5. I believe financial knowledge improves investment decisions.<\/span><\/p>\n

Data Analysis-<\/span><\/b><\/span><\/p>\n

Mean, Standard Deviation, Standard Error and T-Statistic for each statement are as follows:<\/span><\/p>\n\n\n\n\n\n\n\n
\n

\u00a0<\/span><\/b><\/p>\n<\/td>\n

\n

Q1<\/span><\/b><\/p>\n<\/td>\n

\n

Q2<\/span><\/b><\/p>\n<\/td>\n

\n

Q3<\/span><\/b><\/p>\n<\/td>\n

\n

Q4<\/span><\/b><\/p>\n<\/td>\n

\n

Q5<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Mean<\/span><\/b><\/p>\n<\/td>\n

\n

2.18<\/span><\/b><\/p>\n<\/td>\n

\n

2.56<\/span><\/b><\/p>\n<\/td>\n

\n

2.44<\/span><\/b><\/p>\n<\/td>\n

\n

2.62<\/span><\/b><\/p>\n<\/td>\n

\n

2.22<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

SD<\/span><\/b><\/p>\n<\/td>\n

\n

0.96<\/span><\/b><\/p>\n<\/td>\n

\n

1.02<\/span><\/b><\/p>\n<\/td>\n

\n

0.91<\/span><\/b><\/p>\n<\/td>\n

\n

1.06<\/span><\/b><\/p>\n<\/td>\n

\n

0.98<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

SE<\/span><\/b><\/p>\n<\/td>\n

\n

0.1<\/span><\/b><\/p>\n<\/td>\n

\n

0.1<\/span><\/b><\/p>\n<\/td>\n

\n

0.09<\/span><\/b><\/p>\n<\/td>\n

\n

0.11<\/span><\/b><\/p>\n<\/td>\n

\n

0.1<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

T-stat<\/span><\/b><\/p>\n<\/td>\n

\n

-29.15<\/span><\/b><\/p>\n<\/td>\n

\n

-26.9<\/span><\/b><\/p>\n<\/td>\n

\n

-30.67<\/span><\/b><\/p>\n<\/td>\n

\n

-25.64<\/span><\/b><\/p>\n<\/td>\n

\n

-28.38<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>t > +1.96 \u2192\u00a0<\/span><\/b>Accept Positive Alternate Hypothesis (\u03bc > 3) People Agree<\/span>.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>\u22121.96 \u2264 t \u2264 +1.96 \u2192\u00a0<\/span><\/b>Accept Null Hypothesis (\u03bc = 3)\u00a0<\/b>People are Neutral.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>t < \u22121.96 \u2192\u00a0<\/span><\/b>Accept Negative Alternate Hypothesis (\u03bc < 3) People Disagree.<\/span><\/p>\n

Conclusion-<\/span><\/strong><\/span><\/h3>\n

\u2022 Statement 1:<\/span><\/strong> Since the t-stat is < \u22121.96, people disagree that they understand how investments grow money.<\/span><\/p>\n

\u2022 Statement 2:<\/span><\/strong> Since the t-stat is < \u22121.96, people disagree that they feel confident about investing.<\/span><\/p>\n

\u2022 Statement 3:<\/span><\/strong> Since the t-stat is < \u22121.96, people disagree that they can identify risky and safe investments.<\/span><\/p>\n

\u2022 Statement 4:<\/span><\/strong> Since the t-stat is < \u22121.96, people disagree that they know about multiple investment options.<\/span><\/p>\n

\u2022 Statement 5:<\/span><\/strong> Since the t-stat is < \u22121.96, people disagree that financial knowledge improves investment decisions.<\/span><\/p>\n

References<\/span><\/span><\/b><\/p>\n

Lusardi, A., & Mitchell, O. S. (2014).<\/span><\/strong> The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52<\/span><\/em>(1), 5\u201344.<\/span><\/p>\n

OECD. (2018).<\/span><\/strong> OECD\/INFE toolkit for measuring financial literacy and financial inclusion.<\/span><\/em> Organisation for Economic Co-operation and Development.<\/span><\/p>\n

\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0Title- A Study on Financial Literacy and Investment Awareness among Individuals. Authors-Sanskriti Sanap \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sakshi Manjrekar \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ameya Tadwalkar Introduction- Financial literacy plays a vital role in enabling individuals to make informed financial and investment decisions. In today\u2019s evolving financial environment, awareness of investment options, associated risks, and returns is essential for effective money management… Continue reading A Study on Financial Literacy and Investment Awareness among Individuals.<\/span><\/a><\/p>\n","protected":false},"author":139910,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23724","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/139910"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23724"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23724\/revisions"}],"predecessor-version":[{"id":23725,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23724\/revisions\/23725"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23724"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}