Factor Affecting for Personal Financial Literacy of Undergraduates
- June 17, 2021
- Posted by: rsispostadmin
- Categories: Economics, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue V, May 2021 | ISSN 2454–6186
Factor Affecting for Personal Financial Literacy of Undergraduates
Sudarma Priyadarshani1, J.A. Prasansha Kumari2
1Department of Eonomics, University of Kelaniya, Sri Lanka
2 Senior Lecturer, Department of Economics, University of Kelaniya, Sri Lanka
Abstract
Financial literacy has become an important concepts in the modern global economy. Because of globalization all countries and nations can be deal with each other easily. Having good knowledge about financial concepts is essential to deal with each other in the present economy. The study intends to examine the factors effect on personal financial literacy in Sri Lanka. Data were collected using questionnaire from 125 undergraduate students of five different faculties in University of Kelaniya, Sri Lanka. The study finding reveals that total financial literacy of undergraduates is low. There is a strong positive relationship only between parents’ education level and personal financial literacy.
Key Words: Financial Literacy, Undergraduate, gender, education, work experiences
1.Introduction
The ability to manage personal finances has become increasingly important in today’s world. The global marketplace is an increasingly risky and can be unpredictable. It also affects the nations and the societies as negatively or positively. One of its main implications that rising costs of goods and services and it push people to be able to make well-informed financial decisions (Lusardi & Mitchell, 2011, Kumari, 2016a). This phenomenon requires individuals to be prepared with some knowledge and skills relate to the personal financing, or simply financial literacy.
Achieving sustainable economic growth and development are the main objectives of developing countries. There are many various policy measures and strategies have been introduced to achieve these development goals. The levels of development and differences among countries are mainly linked to their capacity for investment, capital formation, and production. The supply of resource for this investment and capital formation is largely depends on a country’s savings.
