The findings of the study suggest that money management is the most important measure of assessing financial literacy whereas basic knowledge of finance affects other measures, i.e., risk management, money management and saving and investment.
Author
Swati Sharma, Assistant Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
Financial literacy is seen as key instrument to ensure financial inclusion. Hence, financial literacy is one of the focus areas for governmental agencies. Financial literacy can be assessed with different measures and the present study investigates those measures of financial literacy and draw causal relation among those measures by employing DEMATEL method.
The study also ranks the measures as per their importance in ensuring financial literacy. The findings of the study suggest that money management is the most important measure of assessing financial literacy whereas basic knowledge of finance affect other measure i.e., risk management, money management and saving and investment.
Thus, ensuring the dissemination of basic knowledge of finance, financial literacy can be ensured. Study also comments on how to increase awareness of basic finance knowledge. This study finding has great application for researchers and institutional authorities.
Published in: Procedia Computer Science
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