RELATIONSHIP BETWEEN FINANCIAL LITERACY AND SAVING HABITS AMONG INDIAN YOUTH

Abstract

This study investigates how financially literate young people in India save money. The digital economy is growing rapidly in India, which brings many new opportunities and considerable risks for young adults. This study employed a quantitative research design. Using convenience sampling, primary data were obtained from 420 respondents aged 18 to 30 years in India, and a structured questionnaire was administered.  Pearson correlation and multiple regression tests were conducted to find the influence of being financially literate on saving behaviour. The findings of the study reveal that young people in India tend to have moderately balanced financial literacy, with better budgeting and expense management skills compared to investing skills. Young people demonstrate satisfactory albeit slightly inconsistent saving behaviour. Financial literacy explains the majority of the variance in saving behaviour, representing 30% of the variability in saving behaviour as shown by regression results.