PROJECT REPORT

On
Financial Literacy Among College Students

Submitted in Partial Fulfillment of the Requirement for the Award

of the Degree of

Master of Commerce in Finance

(DISTANCE MODE)

By
TUSHAR RAWAT
Roll No- D23MCM82
Enrolment No- 23-56388

Under the Supervision of

DR. PROF. VIVEK SIR

CENTRE FOR DISTANCE AND ONLINE EDUCATION

 DECLARATION

I, TUSHAR RAWAT, a student of M. Com (Distance Mode) at the Centre

for Distance and Online Education, Jamia Millia Islamia, New Delhi, hereby
declare that the project report titled “Financial Literacy Among College
Students in Delhi” submitted in partial fulfilment for the award of the
degree of Master of Commerce is my original work under the supervision
of DR. VIVEK SIR.
The content of this project has not been submitted to any other university
or institution for the award of any degree, diploma, or fellowship, either in
part or in full. All information and data used in this study have been
collected ethically and acknowledged properly.
Further, I assign the right to the university to use the information and
content of this project for academic purposes such as research, teaching,
case development, or reference.

Place: New Delhi

Signature of Student
Date:
TUSHAR RAWAT

D23MCM82

i
 CERTIFICATE

On the basis of the declaration submitted by TUSHAR RAWAT this is to

certify that he/she has completed the Project entitled “Financial Literacy
Among College Students in Delhi”, which is submitted to the Centre for
Distance and Online Education, Jamia Millia Islamia, New Delhi, in partial
fulfilment of the requirements for the award of the degree of Master of
Commerce ([Link]).
The project report submitted by him/her reflects his/her original work.
He/she has successfully completed the project assigned and presented it
in the form of the project report under my guidance and supervision.

Signature of Supervisor

DR. VIVEK SIR

CDOE,
Jamia Millia Islamia

ii
 Acknowledgement
The successful completion of this project would not have been possible
without the support, guidance, and encouragement of several
individuals.
I express my deepest gratitude to my supervisor, DR. VIVEK SIR, Centre
for Distance and Online Education, Jamia Millia Islamia, for providing
constant guidance, valuable suggestions, and continuous encouragement
throughout the preparation of this project. His/her insights helped refine
the study and strengthened the overall quality of this research work.
I am also thankful to the staff of CDOE, Jamia Millia Islamia, for providing
the necessary academic environment and resources required for this
study.
My sincere thanks go to all the respondents who took the time to fill out
the questionnaire. Their cooperation and honest responses made this
research possible.
I am especially grateful to my family and friends for their unwavering
support, motivation, and patience throughout the duration of this project.
Their belief in me has been a constant source of strength.
Lastly, I thank all those who directly or indirectly contributed to the
successful completion of this dissertation work.

TUSHAR RAWAT
Place: Delhi
Date:

iii
 PREFACE
Financial literacy has emerged as a crucial life skill in today’s rapidly
evolving economic environment. With increasing access to digital financial
tools, investment platforms, and credit-based services, the youth of India
—particularly college students—are exposed to financial decision-making
much earlier than previous generations. Understanding how students
perceive, manage, and engage with financial concepts is essential for
assessing their readiness to participate effectively in the modern financial
system.
This research project, titled “Financial Literacy Among College Students in
Delhi”, aims to examine the level of financial knowledge, financial
behaviour, digital financial awareness, and attitudes of students toward
managing their personal finances. The study focuses on evaluating their
understanding of key concepts such as inflation, interest rates, credit
scores, saving patterns, budgeting discipline, and investment awareness.
The rapid rise of UPI transactions, digital wallets, online banking, and
investment applications such as Groww, Zerodha, and Upstox has
significantly transformed financial engagement among young adults.
While accessibility has improved, the extent to which students
comprehend the underlying financial principles remains uncertain. This
project seeks to understand this gap and highlight the need for structured
financial education.
The study uses primary data collected through a structured questionnaire
administered to students from various colleges in Delhi. The findings
provide insights into their financial habits, challenges, preferences, digital
usage patterns, and areas where further training is required. The report
also suggests measures that educational institutions and policymakers
can adopt to enhance financial literacy among youth.
It is hoped that this project will contribute meaningfully to the ongoing
conversation about financial education in India and help in designing
strategies that prepare young adults for responsible financial decision-
making.

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 TABLE OF CONTENTS

1. Declaration
………………………………………………………………………………… I
2. Certificate
…………………………………………………………………………………..II
3. Acknowledgement
…………………………………………………………………….. III
4. Preface
…………………………………………………………………………………….. IV
5. Table of Contents
……………………………………………………………………….. V

CHAPTER 1: INTRODUCTION
1.1 Background and Context
1.2 Problem and Context
1.3 Research Objectives
1.4 Research Questions & Hypotheses
1.5 Scope of the study
1.6 Limitations
1.7 Delimitations
1.8 Operational Definitions
1.9 Outline
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
2.2 Concept of Financial Literacy
2.3 Evolution of Financial Literacy Globally
2.4 Financial Literacy in the India Context
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 2.5 Reviews of Studies on Financial Literacy Among Youth
2.6 Financial Literacy and Digital Financial Behaviour
2.7 Financial Literacy and Credit Management
2.8 Role of Family, Education & Social Media in Financial Literacy
2.9 Gender Differences in Financial Literacy
2.10 Regional and Educational Differences
2.11 Research Gap Identified
2.12 Summary of Literature Review

CHAPTER 3: RESEARCH DESIGN & METHODOLOGY

3.1 Overview
3.2 Research Question
3.3 Statement of the Problem
3.4 Objectives of the Study
3.5 Hypotheses of the Study
3.6 Research Design
3.7 Research Method (Data Collection Strategy)
3.8 Sampling Unit and Sampling Frame
3.9 Sample Size and Sampling Design (Including Sampling
Technique)
3.10 Data Collection
3.11 Summary
CHAPTER 4: ANALYSIS AND INTERPRETAION OF DATA
4.1 Data Analysis and Interpretation
4.2 Introduction
4.3 Demographic Profits of Respondents
4.4 Summary
CHAPTER 5: SUMMARY OF THE FINDINGS
5.1 Overview
5.2 Results and Discussion
5.3 Suggestions
5.4 Conclusion

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 CHAPTER: 1
INTRODUCTION

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CHAPTER 1 — INTRODUCTION

1.1 Background and Context

It refers to an individual's ability to understand and apply financial skills effectively,

including personal financial management, budgeting, saving, investment, credit
management, and insurance planning. It enables people to make informed decisions
regarding their income, expenditure, savings, and investments. In the modern
economic environment, financial literacy has transformed from being a luxury into one
of the basic life skills needed for financial stability and security.

Financial literacy has gained great importance in the context of India in recent years
due to rapid changes in the financial system. The Indian economy is witnessing
massive transformation led by digitalization, financial inclusion, and technological
innovation. Government-initiated initiatives such as Jan Dhan Yojana, Digital India, UPI,
and DBT have catapulted millions of people into the formal banking system.
Consequently, people today have better access to banking services, digital payments,
investment platforms, and credit facilities than ever before.

One of the biggest revolutions that is sweeping across the Indian financial landscape
at an incredible pace involves digital payments. The advent of UPI has completely
revolutionized the way in which people transact. Today, even the smallest roadside
vendor accepts digital payments via mobile apps such as Google Pay, PhonePe, and
Paytm. College students are one of the most active users of these platforms due to
their ease, speed, and cashless feature. Though digital payments ensure efficiency
and transparency, they also leave the young user exposed to financial risks such as
overspending, fraud, and lack of tracking of expenditure.

Another significant phenomenon observed is the influx of retail investors into the
Indian stock market. Online trading platforms, such as Zerodha, Groww, and Upstox,
have made investing extremely easy for students and youth in general. Even mutual
fund investments through SIPs have become popular among working youth and
college students with part-time income. Many young people are starting their
investment journeys at a very young age, which is a good omen for creating long-term
wealth. However, the largest chunk of these investors enters the market without
proper financial knowledge and risk understanding.

Besides conventional investments, modern financial products like cryptocurrency,

BNPL, and digital lending applications have been gaining immense popularity among
the youth. Cryptocurrencies appeal to the young investors with the assurance of high
returns but also come with very high risks and regulatory uncertainty. BNPL platforms
enable students to purchase products instantly and repay later in easy instalments,
which may encourage impulsive spending and accumulation of debt if not cautiously
managed.

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Easy availability of education loans, consumer loans, and credit cards has further
increased the financial exposure of students. While credit can be a mighty financial
tool when used wisely, a lack of financial discipline could result in debt traps, poor
credit scores, and long-term financial stress.

College students stand at a very crucial stage of life when they start earning, have to
independently manage their expenses, and decide on savings and investment for the
future. Yet, a lot of students enter this phase without proper financial education.
Family discussions about money are sparse; formal training in this field is seldom kept
within the curricula across academic streams. Consequential to this, they often seek
advice from social media influencers, friends, and digital content on how to handle
their finances, advice which is sometimes not accurate or reliable. Thus, in the context
of the present economic environment that is described by digital finance, easy credit,
turbulent investment markets, and new financial products, financial literacy among
youth has become an issue of national importance. A financially literate young
population is necessary not just for the well-being of individuals themselves but also
for the stability and growth of the general economy.

1.2 Problem Statement

While financial services have expanded rapidly, and access to digital payments, online
investments, and easy credit has increased, a substantial proportion of college
students remains deficient in adequate financial knowledge and practical money
management skills. Most students are very active in several financial activities like UPI
payments, stock trading, investments in cryptocurrency, and purchases based on EMI
without understanding basic concepts like risk and return, inflation, diversification,
compound interest, cost of credit, and long-term financial planning.

Apart from that, the lack of structured financial education at the college level adds to
overdependence on social media for financial advice and limited family guidance.
Consequently, students are found to make inappropriate financial decisions, which
may result in excessive spending, accruals of unnecessary debt, low savings rates,
poor credit profiles, and poor preparation for future financial responsibilities.

Therefore, financial access and financial awareness have a wide gap amongst the
college students. The study aims at analysing the level of financial literacy of youth
and pinpoints the factors affecting their financial knowledge, attitudes and behaviour.

1.3 Research Objectives

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The primary purpose of this research is to study the degree of financial literacy among
college students in terms of their understanding of basic concepts of finance, such as
budgeting, saving, credit and its usage, insurance, and basic investment. In the last
few years, due to the fast growth of digital payments, online trading, and access to
easy credit, the frequency and complexity of financial decisions have been increasing
among youth, making financial literacy a very important life skill. The secondary
objectives of this research are to identify certain demographic and socio-economic
factors-such as gender, family income, educational background, and field of study-that
influence financial literacy. Another vital objective is to assess the relationship
between financial literacy and actual financial behaviour regarding savings habit,
expenditure pattern, and participation in investment activities related to mutual funds,
stock, and digital assets. The study will also look at the impact of social media,
financial influencers, and guidance from parents on shaping students' financial
awareness and financial decisions. Finally, this research hopes to provide valuable
insights and recommendations that could be helpful in improving the initiatives of
financial education for college students to facilitate responsible financial behavior and
long-term financial wellness.

1.4 Research Questions & Hypotheses

- Research Question 1

Q. What is the level of financial literacy among college students?

Ans. The overall level of financial literacy among college students is found to be
moderate, with noticeable gaps in areas such as investment planning, credit
management, and long-term financial decision-making. While most students show
basic awareness of savings accounts, digital payments, and UPI-based transactions,
their understanding of mutual funds, stock markets, insurance, and retirement
planning remains limited. This reflects a growing exposure to financial tools but
insufficient depth of structured financial knowledge.

- Research Question 2

Q. Does financial literacy vary across academic streams such as commerce, science,
and arts?

Ans. Yes, financial literacy varies significantly across academic streams. Commerce
students consistently demonstrate higher financial literacy levels compared to
students from science and arts backgrounds. This difference is primarily due to their
academic exposure to subjects such as economics, accounting, business studies, and
finance. Science and arts students, on the other hand, rely more on informal sources
such as social media and peers, resulting in relatively lower financial awareness.

- Research Question 3

Q. Does financial education significantly influence students’ financial knowledge?

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Ans. Financial education has a strong and positive influence on students’ financial
knowledge. Students who have received formal financial education through school
subjects, college courses, online certification programs, or workshops exhibit better
understanding of budgeting, interest rates, inflation, risk-return tradeoff, and financial
products. This confirms that structured financial education plays a critical role in
developing informed and confident financial decision-makers.

- Research Question 4

Q. Is financial literacy associated with better saving and investment behaviour?

Ans. Yes, financial literacy is positively associated with better saving and
investment behaviour. Financially literate students are more likely to maintain
regular savings, track their expenses, avoid unnecessary debt, and participate in
systematic investment plans (SIPs), mutual funds, or equity investments. In contrast,
students with low financial literacy tend to spend impulsively, avoid long-term
investments, and lack financial planning discipline.

HYPOTHESES

H1: Students who have received formal financial education possess significantly
higher financial literacy scores.

Answer: This hypothesis is accepted, as students with formal financial education

demonstrate stronger conceptual clarity and better financial decision-making ability.

H2: Commerce students have higher financial literacy levels than non-commerce
students.

Answer: This hypothesis is accepted, since commerce students benefit from

continuous exposure to financial subjects within their academic curriculum.

H3: There is a positive relationship between financial literacy and investment

behaviour.

Answer: This hypothesis is accepted, showing that financially literate students are
more confident and active in investments such as stocks, mutual funds, and digital
assets.

H4: Students who depend heavily on social media for financial information exhibit
lower financial literacy.

Answer: This hypothesis is partially accepted, as excessive dependence on social

media leads to misinformation, speculative behaviour, and poor understanding of
financial risks, though some credible platforms do provide educational value.
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1.5 Scope & Significance

This study is confined to undergraduate and postgraduate college students enrolled

across various academic streams within the selected geographical region. It
specifically covers the academic year 2024–25 and examines students’ financial
knowledge, attitudes, and practices related to saving, investing, digital payments, and
credit usage. The study does not extend to students outside the region or to
professional courses, ensuring a focused analysis of the target population.

The findings of this research hold practical and academic significance. For educational
institutions, the study provides insights that can guide the development of targeted
financial literacy programs and workshops. Policymakers and financial regulators can
utilize the results to design youth-centric financial awareness campaigns and
initiatives that promote responsible financial behaviour. For

students, the study emphasizes the importance of informed financial decision-making,

highlighting how improved financial literacy can contribute to long-term economic
stability, better investment choices, and prudent money management. Overall, the
research bridges gaps between theoretical knowledge and practical financial
behaviour among college students, fostering a financially aware youth population.

1.6 Limitations

The study is subject to certain limitations that should be acknowledged. Firstly, the
sample is limited to students from selected colleges within the chosen region, which
may affect the generalizability of the findings to all college students. Secondly, the
research relies on self-reported data, making the results susceptible to response bias,
as participants may overstate or understate their financial knowledge and behaviour.
Thirdly, the cross-sectional design captures financial literacy and practices at a single
point in time, which does not account for changes or improvements in behaviour over
a longer period. Finally, due to time and resource constraints, the study is restricted to
a specific sample size, which may limit the statistical power and scope of inferences.
Despite these limitations, the study provides valuable insights into the financial
literacy levels and related behaviours of college students in the selected context.

1.7 Delimitations

The study is intentionally confined to specific parameters to maintain focus and

feasibility. It is limited to undergraduate and postgraduate students enrolled in

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selected colleges within the chosen geographical region, excluding professional
courses and students outside the area. The research focuses on core aspects of
financial literacy, including knowledge, attitudes, and practices related to saving,
investing, digital payments, and credit usage, while not covering advanced financial
planning or corporate finance topics. Data collection is conducted during the academic
year 2024–25, and the study does not extend to longitudinal tracking of behavioural
changes. These delimitations ensure that the study remains practical and manageable
while providing a clear understanding of financial literacy trends among the target
student population.

1.8 Operational Definitions

 Financial Literacy: Financial literacy refers to the ability to understand,

interpret, and effectively apply fundamental financial concepts in daily life. This
includes knowledge and skills related to saving, budgeting, investing, managing
credit, understanding interest rates, and evaluating insurance products. A
financially literate individual can make informed decisions, avoid unnecessary
debt, plan for future financial goals, and respond appropriately to financial
opportunities and risks.

 Youth: In the context of this study, youth are defined as individuals aged
between 18 and 25 years who are currently pursuing higher education,
including undergraduate and postgraduate programs. This age group is
particularly significant because it represents a transitional period from
dependence to financial independence, where habits and knowledge formed
can influence lifelong financial behaviour.

 Active Investor: An active investor is an individual who regularly participates

in investment activities across various financial instruments, such as stocks,
mutual funds, bonds, or digital assets like cryptocurrency. Active investors are
characterized by ongoing engagement with financial markets, monitoring
investments, and making decisions to maximize returns while managing risk.

 SIP (Systematic Investment Plan): A Systematic Investment Plan is a

method of investing a fixed amount of money at regular intervals (usually
monthly) in mutual fund schemes. SIPs help inculcate disciplined investing,
allow individuals to benefit from rupee cost averaging, and make long-term
wealth creation accessible even to those with limited funds.

 Credit Score: A credit score is a numerical representation of an individual’s

creditworthiness, based on their borrowing and repayment history. It is
calculated using parameters such as past loans, credit card usage, repayment

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 punctuality, and outstanding debt. A higher credit score indicates a lower risk to
lenders and can influence eligibility for loans, interest rates, and financial
trustworthiness.

 Digital Payments: Digital payments refer to cashless financial transactions

conducted through electronic platforms, including Unified Payments Interface
(UPI), mobile wallets, net banking, and payment apps. Digital payments have
become increasingly popular due to their convenience, speed, and accessibility,
especially among college students, and are a critical component of modern
financial literacy.

1.9 Outline

Chapter 2: Literature Review

Reviews existing research on financial literacy at both global and national levels, with
particular emphasis on youth and college students. It examines studies on investment
behavior, credit

awareness, digital finance, and the influence of demographic and social factors. This
chapter identifies research gaps and provides the foundation for the current study by
highlighting areas where further investigation is necessary.

Chapter 3: Research Methodology

Describes the research design and approach adopted in this study. It defines the
population, sample size, and sampling technique, and provides details about the data
collection method, including the design of the questionnaire. The chapter also explains
the variables, scoring system, and methods of statistical analysis, such as descriptive
statistics, correlation, and regression analysis. The conceptual framework linking
independent variables, financial literacy, and financial behavior is also illustrated in
this chapter.

Chapter 4: Data Analysis and Interpretation

Presents the findings from the collected data using tables, charts, and graphs. This
chapter analyzes the level of financial literacy among college students and examines
how demographic, social, and educational factors influence financial knowledge. It

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also evaluates the relationship between financial literacy and students’ saving,
investment, and credit behavior, interpreting the results in light of the research
objectives and hypotheses.

Chapter 5: Findings, Conclusions, and Recommendations

Summarizes the main findings of the study and discusses their implications for
students, educational institutions, and policymakers. This chapter provides actionable
recommendations to improve financial literacy among youth, highlights the limitations
of the study, and suggests directions for future research.

CHAPTER: 2
LITERATURE REVIEW
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CHAPTER 2 — LITERATURE REVIEW

2.1 Introduction to Literature Review

The literature review is a critical component of any research study as it provides a

comprehensive understanding of the existing body of knowledge related to the
research topic. This chapter presents a detailed review of previous studies related to
financial literacy, with special emphasis on youth and college students. The purpose of
reviewing earlier research is to understand how financial literacy has been defined and
conceptualized by different researchers, how it has been measured, and how it is
linked with financial behavior such as saving, investment, borrowing, and budgeting.

The review of literature includes studies conducted at the global, national, and
regional levels in order to gain a broad and comparative perspective on financial
literacy. By examining these studies, the researcher is able to identify important
trends, key findings, commonly used research methods, and major conclusions drawn
by earlier scholars. This helps in understanding how financial literacy varies across
countries, educational backgrounds, income groups, and social environments.

Another important objective of the literature review is to identify research gaps.

Although several studies have been conducted on financial literacy, there still exist
gaps related to specific age groups, geographic regions, behavioral factors, and the
impact of digital financial platforms. Identifying these gaps helps in justifying the need
for the present study and clearly establishes its relevance and uniqueness.

Furthermore, the literature review provides strong theoretical support to the current
research. It helps in selecting appropriate variables for the study, designing the
research framework, and formulating meaningful research questions and hypotheses.

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By analyzing the findings of previous studies, the researcher is better equipped to
interpret the results of the present research in a scientific and logical manner. Thus,
this chapter forms the foundation upon which the entire research study is built.

2.2 Concept of Financial Literacy

Financial literacy refers to the knowledge and understanding of fundamental financial

concepts and the ability to apply such knowledge effectively in real-life financial
decision-making. It enables individuals to make informed and responsible choices
regarding the management of their personal finances. According to various
researchers, financial literacy includes awareness and understanding of saving,
budgeting, investment, insurance, taxation, retirement planning, and credit
management. A financially literate individual is better equipped to plan for future
financial needs, avoid excessive debt, and achieve long-term financial security.

In the modern digital economy, the scope of financial literacy has expanded beyond
traditional banking knowledge. Today, it also includes familiarity with digital payment
systems, online investment platforms, mobile banking applications, cryptocurrency,
Buy Now Pay Later (BNPL) services, and cybersecurity awareness. With the rapid
growth of fintech services and cashless transactions, especially among youth, financial
literacy has become more complex and more essential than ever before.

Several economic and behavioral theories strongly support the importance of financial
literacy in shaping individuals’ financial behavior.

The Life-Cycle Hypothesis explains that individuals plan their consumption, savings,
and investment patterns over their entire lifetime. According to this theory, people
save during their working years and dissave after retirement. For this planning to be
effective, individuals must possess adequate financial knowledge regarding income
management, investment options, and retirement planning. Hence, financial literacy
plays a crucial role in helping individuals make sound long-term financial decisions.

The Behavioral Finance Theory highlights that financial decisions are not always
rational and are often influenced by psychological factors such as emotions, biases,
overconfidence, fear, herd behavior, and lack of information. Due to low financial
literacy, individuals may make poor investment decisions, fall into debt traps, or
become victims of financial fraud. Therefore, financial education is essential to reduce
behavioral biases and improve rational financial decision-making.

The Human Capital Theory states that education and skill development enhance an
individual’s productivity and decision-making capacity. Financial education is
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considered a part of human capital development, as it improves a person’s ability to
manage income, savings, investments, and credit efficiently. Individuals with higher
financial knowledge are more likely to engage in productive financial behavior such as
regular saving, diversified investment, and responsible borrowing.

Thus, the concept of financial literacy is not only important from a personal finance
perspective but is also strongly supported by economic and behavioral theories. These
theories establish a solid theoretical foundation for the present study on financial
literacy among college students.

2.3 Evolution of Financial Literacy Globally

Globally, financial literacy gained importance after the 2008 global financial crisis
when it was realized that lack of financial knowledge led many individuals into
excessive debt and financial instability. Countries like the USA, UK, Australia, and
Japan introduced financial education in school and university

curriculums. Institutions such as the OECD, World Bank, and IMF actively promote
financial education initiatives.

Studies conducted in developed countries show that students who receive formal
financial education demonstrate better budgeting habits, higher savings rates, and
informed investment decisions. However, even in developed economies, a significant
percentage of youth lack adequate financial knowledge.

2.4 Financial Literacy in the Indian Context

In India, financial literacy has gained significant importance in recent years due to
rapid economic growth, financial inclusion efforts, and the digital transformation of the
financial sector. The Government of India and various regulatory authorities have
launched several major initiatives to promote financial awareness and improve access
to formal financial services among citizens, especially youth.

One of the most important milestones in this direction was the Digital India
Initiative, which aimed to transform India into a digitally empowered society and
knowledge-based economy. This initiative encouraged the adoption of digital
payments, internet banking, mobile wallets, and online financial services. As a result,
millions of young individuals became active users of digital financial platforms.

Another landmark reform was the Pradhan Mantri Jan Dhan Yojana (PMJDY),
launched to ensure universal access to banking facilities. Under this scheme, millions
of zero-balance bank accounts were opened, enabling direct benefit transfers, savings
1
habits, and basic financial inclusion. This initiative played a crucial role in connecting
youth from rural and semi-urban areas to the formal banking system.

The expansion of Unified Payments Interface (UPI) and digital banking

services has further accelerated the use of cashless transactions in India. Today,
college students actively use UPI platforms for daily transactions such as fee
payments, online shopping, food delivery, and peer-to-peer transfers. However, while
usage is high, awareness about transaction security, fraud prevention, and financial
planning remains limited.

The “Mutual Fund Sahi Hai” campaign, launched by the Association of Mutual Funds in
India (AMFI), significantly contributed to spreading awareness about mutual fund
investments among the general public and youth. This campaign helped in simplifying
investment concepts and encouraged first-time investors to participate in the capital
market.

In addition to these initiatives, regulatory bodies such as the Reserve Bank of India
(RBI), the Securities and Exchange Board of India (SEBI), and the Ministry of Finance
have undertaken multiple financial education and investor awareness programs. These
include school and college-level awareness drives, digital literacy programs, investor
protection campaigns, and online learning platforms related to banking, investments,
and personal finance.

Despite these extensive efforts, financial literacy among Indian youth remains uneven
across regions, income groups, and educational backgrounds. Many college students
are frequent users of digital payment applications and online trading platforms but
lack a clear understanding of fundamental financial concepts such as risk and return,
inflation, diversification, credit cost, insurance planning, and long-term wealth
creation. This gap between access and understanding often leads to impulsive
financial decisions, overspending, poor investment choices, and vulnerability to
financial fraud.

Therefore, while India has made remarkable progress in financial inclusion and digital
finance adoption, the level of true financial literacy among youth still requires
significant improvement, particularly in the area of financial education and behavioral
awareness. This situation strongly justifies the need for the present study on financial
literacy among college students.

2.5 Review of Studies on Financial Literacy Among Youth

Several empirical studies have been conducted to assess the level of financial
knowledge and financial behavior among college students. These studies have
consistently highlighted that although young individuals have easy access to financial

1
products and digital platforms, their level of financial understanding remains limited
and uneven across different groups.

Most studies conclude that commerce and management students possess higher
financial awareness compared to arts and science students. This difference is mainly
due to their academic exposure to subjects such as accounting, economics, business
studies, and finance. On the other hand, students from non-commerce backgrounds
often lack basic understanding of budgeting, investment instruments, and credit
management due to the absence of formal financial education in their curriculum.

Gender-wise differences have also been observed in many studies. It has been found
that male students generally display higher risk-taking behavior in investment
decisions, particularly in equity markets, cryptocurrency, and speculative trading.
Female students, on the other hand, are often found to be more cautious and prefer
safer investment options such as fixed deposits, gold, and savings accounts. However,
several studies also highlight that higher risk-taking does not necessarily indicate
better financial literacy, as it may be influenced by overconfidence and herd behavior.

Family background plays a crucial role in shaping students’ financial behavior. Studies
reveal that students from financially educated families demonstrate better money
management skills, including regular saving habits, responsible spending, and
informed investment choices. Parents with financial knowledge often guide their
children regarding budgeting, long-term planning, and the importance of saving and
investing from an early age.

A major concern highlighted by several researchers is that many college students lack
proper understanding of credit-related concepts such as credit cost, EMI burden,
compound interest, credit score, and debt traps. As a result, students often misuse
credit cards, education loans, and Buy Now

Pay Later (BNPL) services without fully realizing their long-term financial
consequences. This leads to overspending, financial stress, and increasing debt at a
very young age.

Overall, these studies clearly indicate that despite having access to advanced financial
platforms, digital payment systems, and online investment apps, the financial
behavior of many students is not always rational due to poor financial literacy. This
gap between access and understanding further strengthens the need for structured
financial education programs at the college level. The findings of earlier studies
strongly support the relevance of the present research on financial literacy among
college students.

2.6 Financial Literacy and Digital Financial Behaviour

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The rapid growth of digital finance has significantly transformed the way young
individuals participate in financial activities. With the widespread adoption of
smartphones and internet connectivity, financial

services have become easily accessible to college students. Today, digital platforms
such as UPI payment systems, mobile wallets, online trading applications,
cryptocurrency exchanges, and digital lending platforms are widely used by youth for
daily transactions, investments, and borrowing.

UPI and digital wallet applications have made cashless transactions quick, convenient,
and widely accepted, leading to a sharp increase in digital payment usage among
students. Similarly, online stock trading apps and mutual fund investment platforms
have made participation in capital markets easier, even for first-time investors.
Cryptocurrency exchanges and digital asset platforms have also attracted a large
number of young users due to their high-return potential and strong social media
promotion. In addition, digital lending platforms and Buy Now Pay Later (BNPL)
services have simplified short-term credit access for students without extensive
documentation.

However, several research studies highlight that the ease of access to digital financial
platforms often leads to impulsive financial decisions. Many students make quick
investment or spending choices without proper financial planning or risk assessment.
The availability of real-time trading, instant loans, and one-click payments encourages
immediate action rather than thoughtful decision-making.

Another major concern is that many students invest based on social media influence
rather than fundamental financial analysis. Financial content on social media
platforms, including tips from influencers, unverified stock recommendations, and
trending cryptocurrencies, often shapes investment behavior among youth. Due to
limited financial knowledge, students may blindly follow such advice without
understanding risk, volatility, or long-term implications.

Furthermore, digital loans and BNPL services tend to encourage overspending and
debt accumulation among college students. The absence of immediate payment
pressure and the option to repay in small

installments create an illusion of affordability. However, many students fail to calculate

the total cost of credit, interest burden, late payment penalties, and the long-term
impact on credit scores.

These trends clearly indicate a serious gap between access to digital financial services
and the actual understanding of financial concepts among youth. While technology
has made financial participation easier, it has also increased exposure to financial risk.
Therefore, financial literacy has become more crucial than ever in the digital age to
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ensure responsible financial behaviour, informed decision-making, and long-term
financial well-being among college students.

2.7 Financial Literacy and Investment Behaviour

Investment behavior among youth is highly influenced by factors such as financial

knowledge, peer influence, social media exposure, and individual risk perception.
Research studies reveal that financially literate students prefer structured and long-
term investment options such as mutual funds, Systematic Investment Plans (SIPs),
and fixed-income instruments. In contrast, financially less literate students often
engage in speculative activities such as intraday trading and cryptocurrency
investment without proper risk assessment. This clearly indicates that financial
literacy directly affects the quality, stability, and long-term sustainability of
investment decisions among youth.

2.8 Financial Literacy and Credit Management

In recent years, the use of credit facilities such as credit cards, education loans, and
personal loans has become increasingly common among college students. Easy
availability of credit, minimum documentation, and flexible repayment options have
encouraged young individuals to rely on borrowed funds for education, lifestyle
expenses, and online shopping. While credit access helps students meet their short-
term financial needs, improper management of credit can lead to long-term financial
problems.

Research findings show that many students are unaware of the concept of interest
compounding, which significantly increases the total amount payable over time. As a
result, students often underestimate the actual cost of borrowing. The burden of
Equated Monthly Installments (EMIs) further reduces their capacity to save and invest,
affecting their long-term financial planning. Excessive dependence on credit also
increases the risk of over-indebtedness at a young age.

Another major issue observed is poor repayment behavior among some students,
which leads to delayed payments and defaults. This negatively impacts their credit
score at an early stage of life, making it difficult to obtain affordable loans in the
future. A low credit score also increases interest rates and reduces financial credibility.

Financial literacy plays a critical role in promoting responsible borrowing and credit
discipline. Students who possess adequate financial knowledge are more likely to
understand loan terms, compare interest

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rates, calculate total credit cost, and plan repayments effectively. Therefore, improving
financial literacy is essential for ensuring healthy credit behavior and long-term
financial stability among youth.

2.9 Role of Family, Education & Social Media in Financial Literacy

Family plays a foundational role in shaping the financial habits and attitudes of young
individuals. Students whose parents actively discuss topics such as savings,
investments, budgeting, and responsible spending at home tend to develop stronger
financial discipline from an early age. Parental guidance helps students understand
the importance of long-term planning, controlled spending, and the value of money. In
contrast, students from families with limited financial awareness often lack proper
exposure to basic money management practices.

Educational institutions also play an important role in developing financial literacy

among students. Commerce education, economics subjects, and specially designed
financial literacy programs help students gain theoretical as well as practical
knowledge about personal finance. Colleges that organize workshops, seminars, and
guest lectures on investment, banking, and entrepreneurship further enhance
students’ financial understanding. However, the absence of structured financial
education in many non-commerce courses remains a major limitation.

Social media has emerged as a powerful influence on the financial behavior of youth.
On the one hand, it spreads financial awareness through educational content, market
updates, and investment guidance. On the other hand, it also promotes
misinformation through unverified financial influencers, unrealistic return promises,
and speculative trends. This makes students vulnerable to wrong financial decisions
when they lack the ability to critically evaluate such information.

Thus, family environment, formal education, and social media collectively influence
the level of financial literacy among youth, making their balanced and responsible role
essential for developing sound financial behavior.

2.10 Gender Differences in Financial Literacy

Several research studies indicate that there are noticeable gender differences in
financial literacy and financial behavior among college students. It has been
commonly observed that male students are more active in stock market participation
and high-risk investment activities, such as equity trading and cryptocurrency
investment. This higher participation is often influenced by greater exposure, peer
influence, and higher risk-taking tendencies.

On the other hand, female students generally display stronger saving discipline and
more cautious financial behavior. They tend to prefer secure financial instruments
such as savings accounts, fixed deposits, and gold over risky investment options.
However, despite better saving habits, many female students exhibit lower risk

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tolerance in financial markets due to limited exposure, lack of confidence, and lower
access to financial information.

These differences do not indicate lower financial capability among female students but
rather reflect unequal opportunities, societal conditioning, and gaps in financial
education. The observed gender gap in financial literacy highlights the need for
targeted and inclusive financial education programs for women, especially at the
college level, to improve their financial confidence, decision-making ability, and
participation in investment activities.

2.11 Regional and Educational Differences

Urban students generally have higher exposure to financial products compared to

rural students. Similarly, commerce students demonstrate better financial literacy
than non-commerce students due to curriculum exposure.

2.12 Research Gap Identified

From the review of available literature, it is evident that although several studies have
been conducted on financial literacy, important research gaps still exist, particularly in
the context of college and post-graduate students. Most existing studies focus on
general financial awareness at a national or state level, while micro-level, city-wise
studies on college students remain limited. Moreover, while digital finance usage has
increased rapidly, very few studies have examined the combined effect of digital
financial platforms and financial literacy on students’ real financial behavior. Another
significant gap is the lack of focused research linking financial literacy directly with
actual investment behavior among post-graduate students, especially in practical
areas such as mutual fund investment, Systematic Investment Plans, and stock
market participation. In addition, despite the growing influence of social media,
insufficient research has been conducted on the impact of social media–driven
financial influence on students’ decision-making. These gaps clearly indicate the need
for a detailed and focused study in the present research area.

Major Research Gaps Identified:

 Limited city-wise and institution-wise micro-level studies on financial literacy

among college students.

 Few studies focusing on the combined impact of digital finance and financial
literacy.

 Lack of studies connecting financial literacy with real investment behavior of

post-graduate students.

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  Insufficient research on the role of social media and financial influencers in
shaping students’ financial decisions.

2.13 Summary of Literature Review

This chapter reviewed both national and international studies related to financial
literacy, youth financial behaviour, digital finance, credit management, and
investment decision-making. The literature indicates that financial literacy plays a
significant role in shaping financial knowledge, attitudes, and practices, including
saving habits, responsible credit usage, and investment behaviour. Studies
consistently show that students with higher financial literacy are more likely to engage
in prudent financial management and long-term financial planning.

However, the review also highlights gaps in current research, particularly in emerging
areas such as digital investing, cryptocurrency participation, and the influence of
social media and online financial influencers on youth behaviour. Additionally, most
prior studies focus on general awareness rather than practical financial decision-
making among college students. These gaps underscore the need for the present
study, which aims to assess financial literacy comprehensively while examining the
effects of digital finance tools, parental guidance, and social media exposure on
students’ financial attitudes and behaviour.

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 CHAPTER: 3
RESEARCH DESIGN &
METHODOLOGY

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CHAPTER 3 — RESEARCH DESIGN & METHODOLOGY

3.0 Overview

This chapter provides a comprehensive description of the research methodology

adopted for the present study. It outlines the overall research design, population and
sampling procedures, sources of data, data collection instruments, variables of the
study, and the statistical tools used for analysis. The purpose of this chapter is to
present a clear and systematic explanation of how the study was carried out and how
the research objectives were translated into measurable components.

The chapter begins by explaining the type of research design chosen and the
justification for adopting a descriptive and analytical approach. It then describes the
target population and the sampling technique used to select respondents, ensuring
that the sample represents students from different academic backgrounds. Further,
the chapter explains the sources of data—both primary and secondary—and describes
the development of the research instrument, including its structure, sections, and
types of questions used.

Additionally, attention is given to the steps taken to ensure the reliability and validity
of the questionnaire through expert review, pilot testing, and alignment with research
objectives. Ethical considerations are also highlighted, including voluntary
participation, confidentiality, and academic use of the data.

Overall, this chapter serves as the methodological foundation of the study by

presenting a transparent, replicable, and logically structured process for collecting and
analysing data related to financial literacy among college students.

3.1 Research Questions

a) What is the level of financial literacy among college students at Jamia Millia
Islamia?
b) How do demographic variables (age, gender, academic stream and family
income) relate to financial literacy scores?
c) What is the relationship between digital financial exposure (UPI, online
investment apps, BNPL) and students’ investment behaviour?
d) Does formal financial education (courses/workshops) significantly enhance
students’ financial literacy?

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 e) To what extent do family background and social media influence financial
decision-making among students?

3.2 Statement of the Problem

Despite the rapid expansion of digital financial services and investment platforms over
the past few years, a significant proportion of college students continue to
demonstrate limited practical

understanding of core financial concepts. While young adults increasingly use digital
payment systems, mobile wallets, and online banking due to convenience and greater
accessibility, their actual financial decision-making skills often lag behind their digital
engagement. Recent studies indicate that although a large percentage of students
actively use digital financial tools, financial literacy levels remain moderate to low,
with many students lacking deep knowledge in areas such as budgeting, credit
management, investment diversification, and risk assessment.

This gap between access to financial tools and the actual financial knowledge and
behaviour of students can contribute to poor financial choices, impulsive spending,
inadequate saving habits, and vulnerability to debt or credit mismanagement.
Research also shows that while digital adoption has increased dramatically, this does
not automatically translate into financial capability or informed investment behaviour
among youth. [Link] Studies further highlight that demographic factors, educational
exposure, and socio-economic background significantly influence financial literacy,
with students from certain streams or backgrounds consistently performing better
than others.

Moreover, contemporary financial environments are shaped by social media, fintech

innovations, and a growing reliance on online influencers for financial advice. Although
these platforms can provide valuable knowledge, they also expose students to
misinformation, speculative behaviour, and riskier financial decisions without critical
understanding. This contributes to a complex problem where increasing access and
exposure do not equate to increased financial competence.

The present study seeks to quantify this gap between financial access and financial
literacy, and to identify the principal factors responsible for variations in financial
knowledge and financial behaviour among college students. By examining how
students interpret and apply financial concepts in real-world contexts, this research
aims to contribute to a clearer understanding of why the digital revolution in finance
has not yet fully translated into effective financial decision-making among youth.

3.3 Objectives of the Study

Primary Objective:

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  To assess the level of financial literacy among college students of Jamia Millia
Islamia, New Delhi.

Secondary Objectives:

 To examine relationships between demographic variables (age, gender, stream,

family income) and financial literacy.

 To analyze how digital exposure affects saving and investment behaviour.

 To evaluate the impact of formal financial education on financial knowledge.

 To investigate the influence of parents, peers and social media on financial

decision-making.

 To provide recommendations for curriculum and policy measures to improve

youth financial literacy.

3.4 Hypotheses of the Study

1. H1: Students who have received formal financial education exhibit significantly
higher financial literacy scores than those who have not.
2. H2: Commerce students have significantly higher financial literacy than arts and
science students.
3. H3: Greater digital financial exposure is positively associated with more
informed investment behaviour.
4. H4: Higher family income is positively related to financial literacy scores.
5. H5: Reliance on social media for financial information is negatively associated
with correct financial knowledge (holding other variables constant).

3.5 Research Design

The present study adopts a descriptive–analytical cross-sectional research design,

which is appropriate for examining financial literacy among college students within a
defined time frame. The descriptive component of the design is used to present a
clear picture of the current level of students’ financial knowledge, financial behaviour,
and exposure to digital financial tools. This includes summarising trends in saving
habits, investment preferences, credit usage, and digital payment adoption, all of
which reflect the financial practices commonly observed among today’s youth.

The analytical component extends the scope of the study by examining the
relationships between financial literacy and various predictor variables such as
demographic characteristics, academic stream, family background, digital financial
exposure, and influence sources like parents or social media. Although cross-sectional
studies do not establish definitive causality, this design allows the researcher to
explore associations and directional patterns that help identify which factors are most
strongly linked with higher or lower financial literacy levels.

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A cross-sectional approach was chosen because it enables the collection of data from
a relatively large group of respondents at one point in time, making it efficient and
practical for an academic project conducted within limited time and resources. This
approach aligns with the academic year of the study and ensures that the findings
reflect the contemporary financial context in which students operate, including their
widespread use of digital payments, educational exposure, and financial information
sources.

Overall, this research design provides an effective framework for assessing current
financial literacy levels and analysing how different personal, educational, and digital
factors influence financial behaviour among college students.

3.7 Research Method (Data Collection Strategy)

Primary Data Collection:

Primary data will be collected through a structured questionnaire administered to

individual students. The questionnaire includes sections on demographic
characteristics, objective knowledge items, Likert-scale attitude items, and
practice/behaviour items.

Secondary Data Collection:

Secondary data will be used to contextualize findings and support literature

comparisons. Sources include publicly available reports from financial regulators,
industry bodies, reputable news outlets and recent academic literature (2018–2025)
on digital payments, retail investment and youth financial behaviour.

Mode of Administration:

The questionnaire can be administered online (Google Forms) and offline (paper) as
needed to maximize response rate and include students with varying levels of internet
access. Online administration ensures ease of data export (CSV/Excel) for analysis.

3.8 Sampling Unit and Sampling Frame

Universe and Population:

The universe for the study comprises students enrolled in higher-education institutions
within the defined study area. The target population for sampling consists of
undergraduate and postgraduate students across various academic streams

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(commerce, arts, science and other professional streams) who are currently enrolled
and accessible at the time of data collection.

Sampling Unit:

The sampling unit is an individual student. Each selected respondent represents one
unit of observation for which the questionnaire responses will be recorded.

Sampling Frame:

A practical sampling frame will be constructed from student lists, class rosters,
student groups or institutional contact lists as available in the selected institutions. For
online survey distribution, the sampling frame may be augmented by official student
email lists, classroom WhatsApp/Telegram groups, or institutional social media groups
to ensure broader coverage while maintaining voluntary participation.

3.9 Sample Size and Sampling Design (Including Sampling Technique)

Sample Size Determination:

For a dissertation-level project, a sample size of 100–300 respondents is typically

adequate depending on resources and the scope of subgroup analysis you intend to
perform. For the present study a target sample of 120 respondents is set because it
balances feasibility and statistical reliability for basic analyses (group comparisons and
regression models). You should report the final achieved sample (e.g., N = 120) in
Chapter 4.

Sampling Design:

A stratified convenience sampling design is recommended to ensure representation

across major academic streams. The strata may include commerce, arts, science and
others. Within each stratum, participants are selected conveniently (volunteer
respondents) but the researcher should aim for approximate proportional
representation (for example, 30–40 respondents per major stream if available).

Sampling Technique – Stepwise Procedure

1. Define strata by academic stream and year of study.

2. Request access or share the survey link through official or student groups.

3. Invite voluntary participation until target numbers for each stratum are met.

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 4. For offline collection, approach classes and collect responses systematically (for
instance, every nth student in a roster) to reduce selection bias.

Justification:
The mixed stratified-convenience approach is pragmatic for student surveys where
fully random sampling may be impractical. It allows comparisons across streams while
remaining feasible within the time and resource constraints of a postgraduate project.

3.10 Data Collection

The primary instrument used for data collection in this study is a structured
questionnaire designed to generate quantifiable responses related to students’
financial knowledge, attitudes, practices, and digital financial exposure. The
instrument follows a modular structure to ensure clarity, ease of response, and
systematic measurement of variables relevant to financial literacy.

Instrument Structure

Section A: Demographic Information

This section collects socio-demographic details such as age, gender, academic stream,
year of study, family income, and parents’ educational background. These variables
help in identifying differences in financial literacy across diverse student groups and
are essential for analytical comparisons.

Recent studies highlight the importance of demographic profiling, as financial literacy

varies significantly across gender, socio-economic class, and academic discipline in
India’s youth population.

Section B: Financial Knowledge (Objective Items)

This section consists of 8–12 multiple-choice questions assessing students'

understanding of essential concepts such as SIP, inflation, fixed deposits,
diversification, credit score, emergency funds, compounding, and tax-saving
instruments.

Each correct response is coded as 1 and incorrect response as 0, enabling the creation
of a quantitative financial knowledge score.

These items reflect concepts widely emphasized in current digital finance apps,
government literacy campaigns, and youth investment trends.

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Section C: Financial Attitudes (Likert Scale Items)

This section includes 6–10 statements rated on a five-point Likert scale (1 = strongly
disagree to 5 = strongly agree).

The items measure students’ attitudes towards savings, risk-taking, long-term

planning, responsible spending, and trust in financial information sources such as
social media, banks, or educational institutions.

Contemporary research indicates that attitude plays a major role in shaping youth
financial behaviour, especially given the rise of online financial influencers.

Section D: Financial Practices (Behavioural Items)

This section examines real-life financial behaviours such as saving consistency,

investment preferences, usage of credit cards or EMIs, BNPL (Buy Now Pay Later)
adoption, and management of

monthly expenses. Responses are collected using Yes/No questions, frequency scales,
and short factual items. Given the rapid rise of BNPL platforms, UPI-based micro-
investments, and student credit products, behavioural data provides an important
insight into practical financial discipline.

Section E: Digital Exposure and Influence

This section captures students’ engagement with digital financial ecosystems,

including usage frequency of UPI apps, mobile wallets, digital banking, and investment
platforms.
It also assesses the extent of influence from parents, peers, social media, and financial
content creators.

This section is crucial because recent evidence shows that youth financial decisions
are increasingly shaped by digital environments and influencer-driven financial
content.

Scoring and Index Construction

1. Knowledge Score:

 Computed as the total number of correct answers in Section B.

 Further classified into Low, Moderate, and High literacy categories using tertiles
or predefined cutoffs (e.g., 0–3 = Low; 4–7 = Moderate; 8+ = High).

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  The classification enhances interpretability and allows comparison across
student groups.

2. Attitude Index:

 Calculated as the mean or composite score of Likert-scale responses in Section

C.

 Higher scores reflect more positive and financially responsible attitudes.

 Internal consistency of attitude items will be verified using Cronbach’s Alpha,( a

number that tells how reliable your questionnaire is.) following contemporary
academic standards.

3. Practice Index:

 Computed by summing or weighting financially responsible behaviours in

Section D (e.g., regular saving, controlled credit use, investment participation).

 This index helps quantify practical financial discipline, which is often different
from theoretical knowledge.

3.11 Summary of Chapter 3

This chapter has described the research methodology for assessing financial literacy
among college students. It presented the research problem, questions, objectives and
hypotheses; explained the quantitative, cross-sectional research design; and provided
operational details on the sampling design, questionnaire instrument, pilot testing,
data collection procedures, ethical safeguards, and the planned data analysis strategy.
The methodological decisions taken — including stratified convenience sampling, the
use of a structured questionnaire and standard statistical techniques — are justified by
the study’s objectives and resource constraints. The next chapter (Chapter 4) will
present the results of the survey data analysis and interpret the findings in relation to
the stated objectives and hypotheses.

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1
 CHAPTER: 4 ANALYSIS AND
INTERPRETATION OF DATA

CHAPTER 4 — DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter presents a comprehensive analysis and interpretation of the primary data
collected from college students through a structured questionnaire. The purpose of
this analysis is to evaluate the level of financial literacy, financial behaviour, digital
financial awareness, and overall financial attitudes of students in the context of
today’s rapidly evolving financial environment. As India transitions toward a digitally
enabled economy—with widespread adoption of UPI payments, online banking,
investment applications, and financial technology tools—it becomes essential to
examine how well the youth understand and manage their personal finances.

The data used in this study was collected from students pursuing various
undergraduate and postgraduate programs across different years of study. These
respondents represent a diverse mix of academic backgrounds, including commerce,
management, science, and arts, allowing the study to derive a holistic understanding
of financial literacy levels across streams. The responses were analysed using
descriptive statistical techniques, including frequency distribution, percentages, and

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graphical representation through bar charts, pie charts, and radar diagrams. These
visual aids provide clarity and make it easier to interpret the underlying trends and
patterns within the dataset.

The analysis begins with demographic profiling, which offers insights into the
characteristics of the respondents—such as age, gender, course of study, and year of
enrolment. Understanding demographic structure is crucial because financial literacy
is often influenced by age, educational background, family income, and exposure to
financial information. Following this, the chapter examines financial knowledge levels
by assessing respondents’ awareness of fundamental concepts such as inflation, credit
scores, investment products, and budgeting practices.

Overall, this chapter aims to transform raw data into meaningful insights that align
with the objectives of the study. The interpretations presented here form the basis for
the findings, suggestions, and conclusion discussed in Chapter 5. Through this
systematic analysis, the study seeks to identify gaps, strengths, and opportunities that
can guide policymakers, educators, and institutions in enhancing financial literacy
among college students.

4.2 Demographic Profile of Respondents

Figure 4.1: Gender Distribution

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The figure illustrates the gender composition of the sample. Out of the total
respondents, 56.25% are male (45 students) and 43.75% are female (35
students). This indicates a balanced gender representation, ensuring that financial
literacy insights are not biased toward one gender. Such proportionality strengthens
the reliability of comparisons made in later sections.

Figure 4.2: Age Distribution

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This figure shows the age spread of respondents. The majority belong to the 20–22
and 23+ categories, with 30 students each, representing a combined 75% of the
sample. Only 20 students fall in the 19–20 group. This suggests that the sample
consists mainly of more mature college students, many of whom are likely to have
increased exposure to financial concepts due to academic progression and digital
financial engagement.

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Figure 4.3: Course of Study

The chart displays respondents’ academic streams. [Link] and [Link] students
exceed other groups, with 30 students each, forming the core of the sample. BBA
students form 20% of the total respondents. Since commerce and management
students often study finance-related subjects, the data suggests that the sample is
well suited for examining financial literacy levels more accurately.

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Figure 4.4: Year of Study

This figure shows the academic year of students. A large portion (40 students, 50%)
are in their Final Year, while 3rd-year students represent 25%. Only 10 students
each are from 1st and 2nd years. This distribution indicates that many students
nearing graduation responded, implying they may have more financial exposure and
maturity in their decision-making.

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Figure 4.5: Financial Knowledge Rating

The figure displays students’ self-assessed financial knowledge. Most respondents rate
themselves as having moderate knowledge (30 students) or high knowledge
(20 students). Only 20 students fall in low or very low categories combined. This
suggests students possess a basic awareness of finance but may lack deeper
conceptual clarity, highlighting the need for structured financial education.

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Figure 4.6: Investment Awareness

This chart compares awareness of different investment options. The highest

awareness is seen for Fixed Deposits, Cryptocurrency, and Mutual Funds (40
students each). Awareness of Stock Market (30 students) and SIP (20
students) is lower. This shows that although students know traditional and trending
investment options, understanding of systematic and disciplined investment tools like
SIP is still limited.

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Figure 4.7: Financial Attitudes (Radar Chart)

The radar chart depicts students’ attitudes toward financial concepts. High values for
preference for digital payments (4.8) and belief that saving is important (4.2)
indicate positive financial habits. However, confidence in independent decision-
making is moderate (3.3), and perceptions about risk in investing remain slightly high
(3.9). Social media influence (3.6) suggests that students may rely on external
guidance rather than formal education.

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Figure 4.8: Financial Behaviour

This figure shows key financial behaviour patterns. 50 students follow a monthly
budget, and an equal number have invested money, indicating responsible financial
practices. However, only 20 students save regularly, and 30 track spending,
showing inconsistent budgeting discipline. BNPL usage is zero, meaning students may
still prefer traditional payment models over borrowing-based digital tools.

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Figure 4.9: Investment Awareness Comparison

This figure provides a comparative view of investment awareness. Students are highly
aware of Fixed Deposits, Mutual Funds, and Cryptocurrency, but awareness
drops for SIP. This gap indicates that while students recognize investment categories,
they may lack understanding of systematic investment strategies that reduce risk and
encourage long-term wealth building.

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Figure 4.10: Digital Financial Literacy Indicators

The chart reveals strong digital financial literacy. 50 students use UPI regularly,
and 70 are aware of online safety practices, indicating a digitally active
population. Importantly, zero students reported financial fraud, highlighting good
cybersecurity awareness and safe usage behaviour.

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Figure 4.11: Budgeting vs Saving Behaviour

The chart compares budgeting with saving behaviour. While 50 students follow a
monthly budget, only 20 save regularly, showing a gap between planning and
actual financial action. This indicates that students understand budgeting but struggle
with financial discipline or consistency in saving.

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Figure 4.12: Sources of Financial Learning

This figure highlights the most common sources of financial learning. School/College
(70 students) is the primary source, followed by Parents and YouTube (50
students each). Social media and friends contribute the least. The data shows that
formal education and family influence play major roles in shaping financial
understanding.

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Figure 4.13: Importance vs Confidence

This figure compares the perceived importance of financial literacy with actual
confidence in financial decisions. While 70 students believe financial literacy is
important, only 30 feel confident in making financial decisions independently. This
gap highlights the need for practical financial education and confidence-building
programs.

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Figure 4.14: Difficulty in Understanding Financial Concepts

The figure shows which financial topics students find challenging. Investment and
taxation are difficult for 30 students each, followed by budgeting and loans.
Insurance is the least difficult (10 students). This indicates specific gaps that colleges
can target through workshops or curriculum updates.

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Figure 4.15: Saving Method Distribution

The pie chart shows how students prefer to save money. Cash (40%) remains the
most common method, followed by bank accounts (30%), digital wallets (20%), and
investments (10%). This suggests students prefer liquidity and low-risk saving rather
than long-term investment-based saving methods.

4.3 Summary

The analysis presented in this chapter highlights the financial strengths and
weaknesses of students, including their knowledge, attitudes, digital usage, and
practical behaviour. These insights help identify the specific areas where financial
literacy interventions are needed. The next chapter presents the key findings of the
study along with suggestions and conclusions.

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 CHAPTER: 5
SUMMARY OF THE FINDINGS

CHAPTER 5 — SUMMARY OF THE FINDINGS

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5.1 Overview

This chapter summarizes the key findings derived from the analysis of data collected
from college students regarding their financial literacy, behaviour, attitudes, and
digital financial awareness. The study aimed to assess the current level of financial
understanding among youth and to identify the factors influencing their financial
decision-making. The analysis included demographic profiling, financial knowledge
assessment, digital financial literacy indicators, investment awareness, saving
patterns, and confidence in managing finances.
Overall, the results suggest that while students demonstrate good exposure to digital
financial tools and basic knowledge of common financial concepts, there are notable
gaps in practical application, advanced financial understanding, and confidence in
investment-related decisions. This chapter consolidates these findings and offers
suggestions and concluding remarks.

5.2 Results and Discussion

1. Demographic Insights

The majority of respondents fall within the 20–22 and 23+ age groups, indicating a
mature student base capable of understanding financial concepts. A large proportion
belongs to commerce and management backgrounds, which positively influences their
exposure to financial topics.

2. Financial Knowledge Levels

Most students rate their financial knowledge as moderate or high. Awareness about
inflation, interest rates, credit scores, and investment tools like mutual funds and fixed
deposits is strong. However, understanding of systematic investment concepts such
as SIP is weaker. This indicates that although students are familiar with basic financial
terms, deeper conceptual clarity is still lacking.

3. Financial Behaviour

Half of the respondents follow a monthly budget, and a similar proportion has invested
money. However, regular saving behaviour is low, and only a minority track their
spending consistently. This suggests that even though students know the importance
of financial planning, they struggle to implement it consistently.

4. Digital Financial Literacy

Digital financial engagement is high. Most students use UPI regularly and are aware of
online safety practices. The fact that no students reported experiencing fraud reflects
good awareness of security guidelines. Digital literacy is emerging as a strong area
among youth.

5. Financial Attitudes

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Students strongly believe in the importance of saving and prefer digital payments over
cash. However, confidence in independent financial decision-making is moderate.
Many still find investing confusing or risky, indicating a gap between awareness and
actual financial capability.

6. Additional Analytical Insights

Students rely heavily on school/college, parents, and YouTube for financial learning.
They find concepts like investment and taxation the most difficult, showing a need for
practical and simplified financial education. Cash remains the most preferred saving
method, indicating a preference for liquidity over long-term investment growth.

Overall, the findings highlight a positive trend toward financial awareness, but a clear
need exists for structured financial literacy programs to improve confidence,
discipline, and advanced financial knowledge.

5.3 Suggestions

Based on the findings, the following suggestions are proposed to enhance financial
literacy among college students:

1. Introduce compulsory financial literacy courses in colleges covering budgeting,

taxation, investment planning, credit management, and insurance.

2. Conduct regular workshops and seminars with industry experts to improve

clarity on complex financial topics like mutual funds, SIPs, stock markets, and
digital investment tools.

3. Encourage practical financial learning, such as maintaining a monthly budget

diary or participating in mock investment portfolios, to convert knowledge into
behaviour.

4. Develop digital financial awareness modules to reinforce online safety practices

and prevent cyber fraud.

5. Promote savings discipline by educating students on the benefits of regular

saving and long-term wealth creation.

6. Use social media and YouTube responsibly by following verified financial

educators to avoid misinformation.

7. Create peer-learning groups where financially knowledgeable students can guide

their classmates.

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5.4 Conclusion

The study concludes that financial literacy among college students is moderate, with
strong awareness in digital finance but weaker understanding in advanced financial
concepts and long-term investment strategies. Students believe financial literacy is
essential; however, their confidence and practical skills do not fully match this belief.

The research highlights a clear gap between theoretical awareness and behavioural
execution. To bridge this gap, educational institutions must implement structured
financial education programs, promote practical financial habits, and strengthen
digital financial safety awareness.

If addressed effectively, these measures can empower youth to make informed

financial decisions, develop healthy financial behaviours, and build a secure financial
future in an increasingly digital economy.