Antecedents of Financial Literacy: Evidences from West Bengal, India

Abstract

Financial Literacy (FL) is a multidimensional construct comprising of Financial Knowledge, Financial Attitude and Financial Behavior which is at the core of financial wellbeing of an individual. Effort was made in this study to explore the level of FL of the people in the state of West Bengal, India. In addition, determination of factors affecting such FL was a special interest of the article. The study used secondary data on 3542 respondents from the Financial Inclusion Insight Programme database. Simple statistical tools, non-parametric tests and censored tobit regression model were used to attain the objectives of the study. The outcome of the study revealed prevalence of low level of FL amongst the people in the state of West Bengal. Kolkata, Howrah, Birbhum and Paschim Midnapore were found to exhibit medium level of FL in contrast to the low level of FL for all other districts. Gender, marital status, financial condition, technological aptitude and education were found to be the determinants of the FL.