Financial Literacy and Wellbeing of Informal Workers in Shivamogga City- An Empirical Study

Abstract

Financial Literacy, as defined by Organisation for Economic Co-operation and Development (OECD) is a blend of knowledge about financial matters that provides required skills to take efficient financial decisions with positive attitude. It is a major tool of financial inclusion and for strengthening the personal financial management practices of individuals which in turn, leads to their economic stability. But, it is evident from various Financial Literacy and Inclusion survey reports like ‘OECD INFE report on adult financial literacy in G20 countries’ that the level of financial literacy is not satisfactory in India. It is certainly low in case of demographic groups such as women, illiterates and low income groups. One such vulnerable class is Workers of Unorganised sector who work usually on casual basis, characterized by illiteracy, seasonal employment with low and irregular income. Limited financial resources and lack of financial literacy to manage such limited resources cause lot of financial instability and distress among them. In this perspective, present study makes an effort to measure the level of financial literacy among informal workers in Shivamogga city, Karnataka State. The study tries to identify the factors associated with level of financial literacy and to ascertain whether there exists any significant relationship between financial literacy and wellbeing considering a sample of 50 informal workers based. The selected samples were surveyed using a structured questionnaire on financial knowledge, financial attitude and financial behaviour based on ‘OECD/ INFE toolkit to measure financial literacy and financial inclusion- 2018’. Statistical tools of chi- square and correlation were used to analyse the collected data and was found that demographic factors like gender, age, education, marital status do not have association with financial literacy level except nature of occupation and income level of respondents. Financial literacy level has a significant relationship with financial wellbeing and thus it is most required to increase the level of financial literacy by inculcating the required behavioural skills and positive attitude in order to ensure financial independence and wellbeing among informal workers.