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financial literacy
A STUDY ON THE FACTORS DETERMINING FINANCIAL LITERACY OF HOUSEHOLDS
Dr.M.V.Subha,
Associate Professor, Anna University Regional center, Coimbatore, subhamv@gmail.com P.Shanmugha Priya,
Assistant Professor, Happy Valley Business School, Coimbatore, shanmu.hvbs@gmail.com

Abstract
Manuscript type: Research
Research Question/ Issue
India has been ranked 23rd out of 28 markets in Visa 2012 Global Financial literacy barometer. Financial literacy has gained the attention of a wide range of major banking companies, government agencies, grass-roots consumer and community interest groups, and other organizations. Ineffective money management can also result in behaviors that make consumers open to severe financial crises. Improved financial literacy can benefit individuals and families by giving them more control over their money and helping them make better financial decisions. This research paper finds the factors affecting the financial literacy.
Research Findings /Results
The basic demographic data were also collected. The study revealed that financial literacy is influenced by six factors, they are Managing Debit and Credit, Confidence and attitudes, Skills, Personality, Knowledge and understanding and Future financial planning and the study proved that the financial literacy is the powerful predicator of demand for financial consultancy services.
Tools used: Factor analysis, Correlation
Practical implication
The benefits of a financial literacy on a personal level can be individuals may save more, and better manage risk. There may even be general equilibrium effects: increased demand by households for financial services may improve risk-sharing, reduce economic volatility, improve intermediation, and speed overall financial development. This in turn could facilitate competition in the financial services sector.

Keywords: Financial Literacy, Financial services, Households, Factor, Correlation

INTRODUCTION TO THE STUDY
In recent


Bibliography: 1. Dr Rajendra Nargundkar. (2007) , Marketing Research 2nd edition, published by TATA Mc Graw Hill, page number; 246-260, 312- 320 2 3. Lusardi, Annamaria, and Olivia S. Mitchell, 2007a. Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education. Business Economics, 42(1): 35-44. 4. Cole, Shawn, and Kartini Shastry, 2009. Smart Money: The Effect of Education, Cognitive Ability, and Financial Literacy on Financial Market Participation. Harvard Business School Working Paper 09-071. 5. Binswanger, H.P. 1980. Attitudes toward Risk: Experimental Measurement in Rural India. American Journal of Agricultural Economics, 62: 395-407. 6. Christelis, Dimitris, Tullio Jappelli, and Mario Padula, 2006.Cognitive Abilities and Portfolio Choice.CEPR Discussion Paper No. 5735. 7. Lusardi, Annamaria and Olivia S. Mitchell, 2006. Financial Literacy and Planning: Implications for Retirement Wellbeing. Pension Research Council Working Paper No. 8 12. Mr.Richard Boucher, “Delivering Financial Literacy: Challenges, Strategies and Instruments” March 22-23, 2010, Bengaluru, India at RBI-OECD Workshop 13 14. Indians Save, Americans Invest: Why Financial Literacy Should Accompany Inclusion Published in India Knowledge @ Wharton March 24, 2011.
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