Financial literacy and its effect on financial decisions of households in Punjab and Haryana State

This study attempts to assess the financial literacy level of the respondents, impact of financial literacy level on the respondents' financial decision and study the significant difference between financial literacy level and demographic variables of the respondents in Punjab and Haryana State. Data collection was done through a structured questionnaire which was divided into two parts: first part comprises of demographic variables; and second part contains 33 variables affecting financial decision of the respondents. Regression analysis was performed to measure the significant impact of financial literacy level on financial decision of the respondents and found the statistically significant impact on the financial decision of the respondents. A statistically significant difference was found in the financial literacy level based on respondents' age, marital status, educational qualification, area they belong, occupation and monthly income.