Determinants of Financial Literacy among Individuals in Karnataka: An Empirical Analysis of Socio-Economic, Digital and Behavioural Factors

Abstract

Financial literacy has emerged as an essential capability for individuals to make informed decisions regarding savings, borrowing, investment, insurance, retirement planning, and the use of digital financial services. Despite the rapid expansion of formal banking and digital financial infrastructure in India, substantial differences remain in individuals' ability to understand and effectively use financial products and services. The present study examines the factors affecting financial literacy among individuals in Karnataka. Specifically, it investigates the influence of financial education, income, financial socialisation, digital financial exposure, access to financial services, and financial attitude on financial literacy. The study adopts a quantitative, explanatory research design and proposes collecting primary data from respondents across selected districts representing different regions of Karnataka. A structured questionnaire based on established financial literacy dimensions is used for data collection. Descriptive statistics, reliability analysis, correlation analysis, and multiple regression analysis are proposed for testing the relationships between the identified factors and financial literacy. The study is expected to identify the major determinants responsible for variations in financial literacy and provide implications for policymakers, financial institutions, educational institutions, and financial education agencies in designing targeted financial literacy interventions in Karnataka.