Financial Literacy: A study on Rural Women in India

Abstract

Financial literacy is the set of skills that enables people to understand the financial principles and to make informed judgments and effective decisions regarding the use of their money. This paper attempts to investigate financial literacy of rural women based on various demographic and socio-economic factors and challenges faced by them with regard to knowledge of financial concepts .Financial literacy plays a crucial role in sustainability of economic well being and affects the investment decisions including financial behavior and attitude. But due to low literacy level in rural areas, women are not able to make good financial decisions in their personal life and family hence it affect their financial freedom and sustainability. One way of appraising financial literacy is to look at how well women are managing and dealing their financial issues . The researcher assess the awareness level of rural women with respect to availability of key financial concepts and products , spending patterns and the capability of decisions .. In this respect, the researcher made an effort to assess the level of financial awareness and constraints of rural women with regard to financial literacy, which will help policy makers to plan appropriate decisions in order to boost the level of financial literacy among the women in rural areas.