Title: Determinants of financial literacy of young adults: testing the influence of parents and socio-demographic variables

Authors: Shikha Bhatia; Deepak Chawla; Sonali Singh

Addresses: International Management Institute New Delhi, B-10, Tara Crescent, Block B, Qutab Institutional Area, New Delhi, Delhi 110016, India ' International Management Institute New Delhi, B-10, Tara Crescent, Block B, Qutab Institutional Area, New Delhi, Delhi 110016, India ' Jaipuria Institute of Management, A-32, Block A, Industrial Area, Sector 62, Noida, Uttar Pradesh 201309, India

Abstract: Acquiring good financial literacy (FL) can be very helpful for a young adult, as it may allow for making informed choices and long-term financial decisions. The research evidence suggests that in general people are less financially literate, which becomes an impediment to making the right form of savings, investment, retirement planning and other such important decisions. The objective of the study is to identify what determines the level of FL of young adults undertaking a management program in India. This study, in addition, examines the effect of parental influence by including three facets of it; namely, parents direct teaching, parents' financial behaviour and parents as role models. Notably, parents' influence is a significant determinant of FL. Among other factors, higher FL was found for male respondents, those with more educated mother, and finance majors.

Keywords: financial literacy; financial knowledge; knowledge of finance and economics; young adults; parental influence; financial socialisation.

DOI: 10.1504/IJICBM.2021.113010

International Journal of Indian Culture and Business Management, 2021 Vol.22 No.2, pp.256 - 271

Received: 13 Aug 2019
Accepted: 12 Jan 2020
Published online: 15 Feb 2021 *

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