Impact of Financial Literacy Intervention on Financial Attitude of Individuals: An Empirical Study

Abstract

The recent global 'subprime- mortgage crisis arose due to inadequate understanding of features of financial products due to financial illiteracy. Such a crisis reminds us of the critical importance of Financial Literacy for financial stability in a country (Ben Bernake, 2000). Rational financial decisions among individuals require proper knowledge and understanding of financial concepts to navigate the financial system. Since sound financial decisions make an individual life fill with prosperity and economic wellbeing. The present multi-disciplinary experimental study aims to observe impact of Financial Literacy intervention onFinancial Attitude for goals(FAG) of individuals and prevalence pattern of FAG Pre and Post- Financial Literacy Intervention. The study is conducted on working people in tricity Chandigarh in the age group of 21 to 60 with a representative sample size of 308. It is observed that after financial literacy intervention, the mean high score for Financial Attitude for goals of individuals has improved for each statement.Two-tailed paired sample, t-test revealed that there is a significant impact of financial literacy on financial attitude for goals of individuals.