This paper is published in Volume-6, Issue-5, 2020
Dr. Dipti Tulpule, Prashant Chougule
Amity Global Business School, Pune, Maharashtra, India
Pub. Date
22 October, 2020
Paper ID
Young Adults, Financial Behavior, Financial Attitude, Financial Literacy, Risk Aversion, Self-Perception, Financial Decision Making


Dr. Dipti Tulpule, Prashant Chougule. Financial literacy among the youth- A conceptual review, International Journal of Advance Research, Ideas and Innovations in Technology,

Dr. Dipti Tulpule, Prashant Chougule (2020). Financial literacy among the youth- A conceptual review. International Journal of Advance Research, Ideas and Innovations in Technology, 6(5)

Dr. Dipti Tulpule, Prashant Chougule. "Financial literacy among the youth- A conceptual review." International Journal of Advance Research, Ideas and Innovations in Technology 6.5 (2020).


Financial literacy is the sum total of various skills, aptitudes and abilities required to make sense of financial phenomena & take sound financial decisions. It is a very important concept in the present times. The world that we witness today is a much different one than the one occupied by our elders. Even though many things have managed to remain the same, many more have changed rapidly. Accompanying these rapid changes are the growing complexity in the way in which thigs work, for eg; the financial system. Just consider the following; 1. More and more youngsters are conscious about considering retirement planning since early on, as they know they have to fend for themselves past their retirement age. 2. More than ever before, youngsters today need to think of their income as a limited economic resource, which has unlimited demands, many alternative uses, considerable opportunity cost & their spending behaviour can have long term, irrevocable consequences. 3. We, as a country, over the past decade are slowly but surely shifting from a nation of savers to that of spenders, with more and more youngsters being comfortable with credit cards & term loans for acquiring a variety of consumer goods. 4. The financial system, too, has never been more flabbergasting, with a plethora of investment & insurance products (who often intermingle) to choose from & advisors of all classes & pedigree vying for a chance to manage other’s money for them, for a fee, ofcourse. 5. Easy access to & low barriers in financial markets of all types, terms, sizes & shapes have attracted many youngsters to take part in them, irrespective of these youngsters’ understanding thereof & expertise therein. It is very easy to fumble and make mistakes in such a scenario, if one is not well equipped with the necessary skills and abilities to make sense of & then harness all the data & information, often easily & abundantly available, to make sound financial decisions. Often, such mistakes have been known to have long term, even permanent, ramifications. It is evident from the large number of youngsters and even middle aged people still struggling pay off their student loan arrears & make sense of their burgeoning credit card debt. Considering this, it probably wouldn’t be an exaggeration to consider financial literacy a valuable life skill. Measuring relevant parameters is the first logical step towards solving a problem. In order to understand whether the youngsters of today possess necessary skills, aptitudes & abilities to make sound financial decisions, we first need to measure their current level of financial literacy & identify the various determinants & influencing factors in financial decision-making process, as engaged in by the youth. This is an endeavour which will aid the various stakeholders (policy makers, educators, parents, youngsters, banks & other financial institutions, regulators, etc) to undertake necessary policy interventions, create effective educational programs, develop relevant financial products and effectively train the next generation of decision makers to make better financial decisions. Also, relevant research gaps need to be explored in order to undertake future research. The current research paper is an attempt in that direction.