| Title : | Financial literacy in Nepal: a survey analysis from adults in Kathmandu valley | | Material Type: | printed text | | Authors: | Baburam Subedi, Author | | Publication Date: | 2016 | | Pagination: | 58p. | | Size: | GRP/Thesis | | Accompanying material: | 5/B | | General note: | Including bibilography | | Languages : | English | | Descriptors: | Consumer education
Financial literacy
| | Keywords: | 'literacy consumer education consumer protection education' | | Class number: | 370 | | Abstract: | Financial literacy is a core life skill for participating in modern society. The dynamism of society is constantly changing with the increment of business and financial activities. Over the past two decades, interest in financial literacy and its improvement has increased massively worldwide. It also involves intimate knowledge of financial concepts like compound interest, financial planning, the mechanics of a credit card, advantageous savings methods, consumer rights, time value of money, etc. In a sum, it is the possession of knowledge and understanding of financial matters for better well-being in life. Being new concept, financial literacy is very relevant to Nepal's at present. Those who are less financially literate are more likely to have problems with debt and to engage in high-cost loans from moneylenders, while they are less likely to save or to plan their finances for the future. A review of research on financial literacy shows that financial literacy is utmost necessary uplift people from poverty situation. Financial literacy is most important to break down the border line of low financial access and awareness. It is compulsory for every individuals of society. Moreover, it play significant role to improve the demand of financial services in country and helps to minimize the risks and uncertainty related to entrepreneurship and business transaction.
The importance of financial education in Nepal has increased in recent years as a result of financial market developments and demographic, economic and policy changes. Financial markets are becoming more sophisticated, and new products are being continuously offered. Consumers now have greater access to a variety of credit and saving instruments provided by a range of entities from online banks and brokerage firms to community-based groups. As a result of changes being introduced in pension arrangements, an increasing number of workers will be assuming more responsibility for saving for their retirement. With the increase in life expectancy, individuals will need to ensure that they have adequate savings for the longer period they can expect to spend in retirement. More importantly, the excessive inflow remittance and high expenditure on consumption emphasizes the urgent need of financial literacy in Nepal. This study examines the factors affecting the level of financial literacy in Nepal covering financial knowledge, behavior and attitudes relating to various aspects of financial literacy including budgeting and money management, short and long term financial plans, and financial product choice.
viii
The main issue of the study is to analyze the level of financial literacy in adults of Kathmandu valley.
The main purpose of the study is to examine the level of financial literacy in adults of Kathmandu valley. More specifically, it examines the impact of gender, age, occupation, income, education, behavior, influence, and attitudes on level of financial knowledge of adults. The study is based on the survey data which were collected from the 478 respondents of three districts. Stratified random sampling method was used to collect data from Kathmandu valley i.e. Kathmandu, Bhaktapur, and Lalitpur. A structured questionnaire was constructed covering five areas namely personal information of respondents, financial behavior, financial influence, financial attitude and financial knowledge. Including demographic information, survey participants were asked 73 question of financial knowledge and opinion of different aspects of financial literacy. Questionnaires were prepared in both Nepali and English medium and authors distributed as per request of respondents. For the fact finding of the study primary data was analyzed by using descriptive analysis, ANOVA analysis, correlation analysis and logistic regression.
The major conclusion of this study is that there is positive relationship between demographic characteristic i.e. age, income, occupation and financial knowledge. Likewise, there is positive relationship between personality characteristic i.e. behavior, influence, attitude and financial knowledge. It implies that enhanced in behavior, attitude, and influence of adults can increase level of financial knowledge of respondents. The study found adults of Kathmandu valley are more familiar and knowledgeable in net worth, share market, insurance, banks, taxes and credits in-compare to financial numeracy, compound interest, discount, time value of money and inflation. Adults prefer to save in bank accounts instead of buying physical good & consumer goods in case of excess money they have. It was also found that adults with different demographic background such as age, education, occupation, income, location, marital status and personality characteristics like financial behavior, financial attitudes, and financial influence have different level of financial knowledge among adults of Kathmandu valley.
Recommendations are given on the basis of the finding of study. The study found the higher level of financial knowledge in advance finance compare to basic level of finance. Thus for the future study academicians are suggested to carry similar research using similar dependent and independent variable. |
Financial literacy in Nepal: a survey analysis from adults in Kathmandu valley [printed text] / Baburam Subedi, Author . - 2016 . - 58p. ; GRP/Thesis + 5/B. Including bibilography Languages : English | Descriptors: | Consumer education
Financial literacy
| | Keywords: | 'literacy consumer education consumer protection education' | | Class number: | 370 | | Abstract: | Financial literacy is a core life skill for participating in modern society. The dynamism of society is constantly changing with the increment of business and financial activities. Over the past two decades, interest in financial literacy and its improvement has increased massively worldwide. It also involves intimate knowledge of financial concepts like compound interest, financial planning, the mechanics of a credit card, advantageous savings methods, consumer rights, time value of money, etc. In a sum, it is the possession of knowledge and understanding of financial matters for better well-being in life. Being new concept, financial literacy is very relevant to Nepal's at present. Those who are less financially literate are more likely to have problems with debt and to engage in high-cost loans from moneylenders, while they are less likely to save or to plan their finances for the future. A review of research on financial literacy shows that financial literacy is utmost necessary uplift people from poverty situation. Financial literacy is most important to break down the border line of low financial access and awareness. It is compulsory for every individuals of society. Moreover, it play significant role to improve the demand of financial services in country and helps to minimize the risks and uncertainty related to entrepreneurship and business transaction.
The importance of financial education in Nepal has increased in recent years as a result of financial market developments and demographic, economic and policy changes. Financial markets are becoming more sophisticated, and new products are being continuously offered. Consumers now have greater access to a variety of credit and saving instruments provided by a range of entities from online banks and brokerage firms to community-based groups. As a result of changes being introduced in pension arrangements, an increasing number of workers will be assuming more responsibility for saving for their retirement. With the increase in life expectancy, individuals will need to ensure that they have adequate savings for the longer period they can expect to spend in retirement. More importantly, the excessive inflow remittance and high expenditure on consumption emphasizes the urgent need of financial literacy in Nepal. This study examines the factors affecting the level of financial literacy in Nepal covering financial knowledge, behavior and attitudes relating to various aspects of financial literacy including budgeting and money management, short and long term financial plans, and financial product choice.
viii
The main issue of the study is to analyze the level of financial literacy in adults of Kathmandu valley.
The main purpose of the study is to examine the level of financial literacy in adults of Kathmandu valley. More specifically, it examines the impact of gender, age, occupation, income, education, behavior, influence, and attitudes on level of financial knowledge of adults. The study is based on the survey data which were collected from the 478 respondents of three districts. Stratified random sampling method was used to collect data from Kathmandu valley i.e. Kathmandu, Bhaktapur, and Lalitpur. A structured questionnaire was constructed covering five areas namely personal information of respondents, financial behavior, financial influence, financial attitude and financial knowledge. Including demographic information, survey participants were asked 73 question of financial knowledge and opinion of different aspects of financial literacy. Questionnaires were prepared in both Nepali and English medium and authors distributed as per request of respondents. For the fact finding of the study primary data was analyzed by using descriptive analysis, ANOVA analysis, correlation analysis and logistic regression.
The major conclusion of this study is that there is positive relationship between demographic characteristic i.e. age, income, occupation and financial knowledge. Likewise, there is positive relationship between personality characteristic i.e. behavior, influence, attitude and financial knowledge. It implies that enhanced in behavior, attitude, and influence of adults can increase level of financial knowledge of respondents. The study found adults of Kathmandu valley are more familiar and knowledgeable in net worth, share market, insurance, banks, taxes and credits in-compare to financial numeracy, compound interest, discount, time value of money and inflation. Adults prefer to save in bank accounts instead of buying physical good & consumer goods in case of excess money they have. It was also found that adults with different demographic background such as age, education, occupation, income, location, marital status and personality characteristics like financial behavior, financial attitudes, and financial influence have different level of financial knowledge among adults of Kathmandu valley.
Recommendations are given on the basis of the finding of study. The study found the higher level of financial knowledge in advance finance compare to basic level of finance. Thus for the future study academicians are suggested to carry similar research using similar dependent and independent variable. |
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