A study on financial literacy among rural women with reference to Mandi district Himachal Pradesh

Abstract

newlineFinancial literacy is mainly used in connection with personal finance matters (e.g. real newlineestate, insurance, investing, saving, tax planning, and retirement), including the newlineunderstanding of financial concepts like compound interest, risk diversification, newlineadvantageous savings methods, and consumer rights. Studies related to financial newlineliteracy in general measure three specific concepts: newline1) Knowledge of fundamental financial concepts. newline2) Awareness of products and services offered by different financial service newlineproviders and an understanding of the risks associated with using these products newlineand services. newline3) Understanding how to manage personal finances or use financial services. newlineResearchers have concluded that financial literacy is necessary for the well-being of newlineindividuals and the development of the economy. However, Willis (2008) has taken a newlinecontrary view arguing that, there is no consensus, on the definition of financial literacy newlineas well as on the method of its measurement. Therefore the outcome of the studies newlinecannot be taken as a benchmark. Moreover, financial literacy programs are entailed newlinewith the costs. On the other hand, the effectiveness of these programs is not supported newlineby empirical evidence. newline