Evaluating the Effect of Financial Literacy and Financial Attitude on Saving Behaviour in the Modern Era

By : ASI Vasudeva Reddy , Chitra Rekha Y. , Anu Priya P. , Aksa Rachel Prasad

Page No: 151-160

Abstract
This study evaluates the effect of financial literacy and financial attitude on saving behaviour among individuals along with financial attitude. It utilizes a simple random sampling technique to gather data which was collected through a structured questionnaire. Pearson correlation and regression analysis were employed to ascertain the relationship between various factors and the saving behaviour of individuals. The results indicate that financial literacy and financial attitude both show a significant positive correlation with saving behaviour, however, financial attitude has a more predominant impact on the saving behaviour of individuals as compared to financial literacy. The results also demonstrate a significant effect of financial literacy on saving behaviour, both directly and indirectly, and confirm a decent mediation by financial attitude on the association between financial literacy and saving behaviour.

Authors:
Asi Vasudeva Reddy : VIT Business School, Vellore Institute of Technology, Chennai, India.
Chitra Rekha Y. : Department of Science & Humanities, NBKR Institute of Science & Technology, Tirupati, AP, India.
Anu Priya P. : MBA Student, VIT Business School, Vellore Institute of Technology, Chennai, India.
Aksa Rachel Prasad : MBA Student, VIT Business School, Vellore Institute of Technology, Chennai, India.
 

DOI: https://doi.org/10.32381/PROD.2024.65.02.5