Title: Navigating the financial landscape: financial knowledge and financial literacy behaviours among rural Indians

Authors: V.M. Vijay Kumar; J.P. Senthil Kumar

Addresses: Department of Financial Management, GITAM School of Business-GITAM (Deemed to be University), Bengaluru Campus, 561203, India ' Department of Financial Management, GITAM School of Business-GITAM (Deemed to be University), Bengaluru Campus, 561203, India

Abstract: This research aims to investigate the influence of financial knowledge on responsible financial behaviours in rural India using the Theory of Planned Behaviour framework. The study seeks to understand how financial knowledge affects individuals' intentions and actions related to financial decisions from a specific perspective. This study investigates the influence of financial knowledge on financial behaviours in rural India. The study demonstrates a positive correlation between financial knowledge and financial literacy behaviours. Path analysis further reveals a direct positive impact of financial knowledge on both behavioural intentions and financial literacy behaviours. These findings suggest that interventions to enhance financial knowledge and positive financial attitudes can effectively improve financial literacy behaviour in rural India. Policymakers are encouraged to allocate resources to design and implement targeted financial education programs in rural areas. This research is original in its focus on rural India, highlighting the need for customised interventions to foster responsible financial behaviours and reduce financial vulnerabilities.

Keywords: financial knowledge; financial literacy; financial behaviour; structural equation modelling; TPB; theory of planned behaviour; financial well-being.

DOI: 10.1504/AJFA.2024.141560

American Journal of Finance and Accounting, 2024 Vol.8 No.2, pp.116 - 149

Received: 08 Dec 2023
Accepted: 08 Jul 2024
Published online: 23 Sep 2024 *

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