An insight into financial literacy of University faculties: A case study of University of Rajasthan employees, India

Abstract

Research on measurement of financial literacy and its implications have increased in recent years; however, being focused on vulnerable population sub-group the studies have ignored the better-off section. To attain a sustainable financial system, financial literacy must reach all including educated ones who can also be its provider. Teachers, being one such group can act as a channel between banks and students; however, it is imperative to quantify effect of education on financial literacy. Hence, the study based on primary data collected from employees of the University of Rajasthan, India aims at: measuring financial literacy and quantifying the effect of education. The results using Quantile regression estimates reveal positive effect of education on financial literacy declines with its improving score. It mandates the need for exclusive financial training programs to move from low to high level even for highly qualified teachers. Also, educated groups are not insulated from lack of financial literacy though they do have a basic understanding of financial concepts and hence can easily move up the ladder as well as pass on the information to their students. Considering the facilitator role of education, special programs oriented towards the better-off section particularly teachers should be designed.

Keywords

• Financial literacy
• Education
• University teachers
• India