Financial Literacy and Personal Financial Planning Among Young Employees


  • Liya Peter, Dr. V. Ambilikumar


The financial situation in India is undergoing tremendous changes and becomes highly complex for the common man to withstand the increased financial and market risks. Individuals are taking some kind of financial decisions which mainly include their personal finance decisions. Personal finance planning is the planning of personal and family resources which are considered important in achieving financial success; it involves how people plan to spend, save, protect, and invest their financial resources. Personal financial planning covers financial and career planning, budgeting, tax planning, cash management, credit cards, borrowing, planning of major expenditures, risk management, investment planning, retirement planning, and estate planning. The existing literature highlighted the fact that financial literacy is highly essential in the making of an effective personal financial plan. Thus this paper attempted to measure the level of financial literacy and its relationship with the personal financial planning of young employees. The study aimed to find out the association of demographic and socio-economic factors of young employees to their level of financial literacy. The study was conducted among 140 young employees of the age group 18 to 29 years from the organized sector in Kerala. The study revealed that the financial literacy levels of young employees were associated with personal financial planning.