A Status of Financial Literacy among Higher Secondary Students of Vadodara City

Abstract

This paper studies the financial literacy levels among higher secondary students in Vadodara city, Gujarat, aiming to judge their understanding of essential financial concepts and identify factors influencing their financial knowledge. The research employs a structured questionnaire administered to students across various schools in Vadodara, focusing on their awareness of budgeting, saving, investing, credit management, and financial planning. The findings reveal a moderate level of financial literacy among the participants, with significant variations observed across different educational streams and socioeconomic backgrounds. While students demonstrate a basic understanding of financial terms, their ability to apply this knowledge in real-life scenarios remains limited. Notably, students from commerce backgrounds exhibit a higher level of financial literacy compared to their peers in science and arts streams. Furthermore, the study identifies a lack of comprehensive financial education in the school curriculum as a contributing factor to the observed gaps in financial knowledge. The research underscores the necessity for integrating financial literacy programs into the educational framework to equip students with the skills required for sound financial decision-making. Recommendations include the incorporation of interactive workshops, collaboration with financial institutions, and the development of age appropriate financial education modules to enhance students' financial capabilities. By fostering financial literacy at the secondary education level, the study aims to contribute to the development of financially informed and responsible citizens, thereby supporting the broader goals of financial inclusion and economic empowerment in India.