FINANCIAL LITERACY, PERCEIVED RISK ATTITUDES AND INVESTMENT INTENTIONS AMONG WOMEN

Ms. B. Vimala; Dr. K. Alamelu

Volume : VII, Issue : XI, November - 2018

FINANCIAL LITERACY, PERCEIVED RISK ATTITUDES AND INVESTMENT INTENTIONS AMONG WOMEN

Ms. B. Vimala, Dr. K. Alamelu

Abstract :

Financial literacy is the concept in which individuals and households get the required education and skills to understand management of personal finance better. It is the set of knowledge and skills that one needs to acquire to arrive at financial decisions so as to impact their financial wellbeing positively. By financial literacy we mean a positive thinking on the need for financial planning, good understanding about the various financial services, knowledge about the various products, a fair idea of the risks and rewards in terms of usage of the services, a reasonable grasp of the concepts like interest rate, compounding, inflation, diversification etc. The present paper deals with the financial literacy of the women belonging to Karaikudi – Town in Tamilnadu. Using a structured questionnairethe primary data were collected randomly from a sample size of thirty respondents. The collected data were analyzed using SEM and chi square test. The results stated that women should be given equal power to take financial decisions as taken by men. Many women were lacking financial knowledge about how to save, how to use various electronic transaction mediums, investment avenues available, saving schemes and how to spend money. The SEM model results indicated that the financial literacy has a significant impact on risk attitudes and investment intentions of women. The Chi–square test indicated that out of the demographic variables tested such as age, monthly family income and educational qualification, all have significant relation on the financial literacy on women.