Influence of Financial Literacy on Financial Inclusion and Household Financial Choices: The Mediating Role of ICTs in Chennai

Abstract

Financial literacy plays a crucial role in enhancing financial inclusion and shaping household financial choices, particularly in an increasingly digital financial environment. This study examines the influence of financial literacy on financial inclusion and household financial choices, with a specific focus on the mediating role of Information and Communication Technologies (ICTs) among households in Chennai. The study is based on primary data collected from 120 household respondents using a structured questionnaire. Descriptive statistics, correlation analysis, regression analysis, and mediation analysis were employed using the Statistical Package for the Social Sciences (SPSS) to analyze the data.

The findings reveal that financial literacy has a significant positive impact on both financial inclusion and household financial choices. ICT adoption and usage was found to partially mediate the relationship between financial literacy and financial inclusion, as well as between financial literacy and household financial choices. The results highlight that ICTs serve as an important channel through which financial knowledge is translated into inclusive financial behavior and informed household decision-making. The study underscores the need for integrated financial literacy and digital inclusion initiatives to strengthen household financial well-being and promote inclusive growth in urban India.