How Financial Literacy Educations Benefits Low Income Communities
Krishna Chandak
Guided By – Dr. Ravi Mishra
Bachelor of Business Administration,
Amity Business School,
Amity University, Chhattisgarh, India
Abstract
This study investigates the current level of financial literacy among individuals in low-income communities, aiming to identify key factors that influence their financial behaviours and evaluate the effectiveness and preferences for financial literacy education. Utilizing a descriptive cross-sectional design, data were collected through structured questionnaires administered both in-person and online, involving approximately 300 to 400 adult respondents from diverse demographic backgrounds. The questionnaire assessed participants’ familiarity with financial concepts, participation in literacy programs, preferred educational methods, financial behaviours, and perceived barriers to saving.
Findings reveal that most individuals possess a moderate understanding of fundamental financial principles such as budgeting, saving, and debt management, yet lack in-depth knowledge and confidence. Participation in formal financial literacy programs remains limited due to barriers including low awareness, accessibility challenges, and economic constraints. A significant preference for digital learning platforms—such as mobile apps and online courses—emerged, highlighting the growing role of technology even within economically disadvantaged groups. Additionally, over half of the respondents acknowledged that financial literacy education positively influences their money management skills and overall economic well-being.
The study confirms hypotheses that moderate financial literacy is prevalent, and digital methods are preferred for learning, while also identifying low participation rates as a critical challenge. Recommendations include enhancing outreach efforts, developing culturally tailored digital content, improving accessibility, and integrating practical financial support services to overcome economic barriers.
Overall, this research underscores the potential of targeted financial literacy education to empower low-income communities but emphasizes the need for accessible, relevant, and technology-driven approaches to maximize impact and foster long-term financial stability.
