Financial Literacy and Financial Behaviour: An Empirical Study among Manufacturing Industry Employees in Tamil Nadu

Premalatha S; Dr. Jothi Jayakrishnan; Dr. D. Sakthivel

doi:10.69980/redvet.v25i1.2462

Premalatha S
Dr. Jothi Jayakrishnan
Dr. D. Sakthivel

DOI: https://doi.org/10.69980/redvet.v25i1.2462

Keywords: Financial Literacy, Financial Knowledge, Budgeting Skill, Savings Behaviour, Financial Attitude, Financial Confidence, Financial Behaviour, Manufacturing Employees, Tamil Nadu.

Abstract

Financial literacy has emerged as a critical factor influencing employees' financial behaviour and overall financial well-being. In the modern economic environment, employees are required to make informed financial decisions regarding budgeting, savings, investments, and debt management. The present study examines the relationship between financial literacy dimensions and financial behaviour factors among employees working in selected manufacturing companies across Tamil Nadu. The study considers financial knowledge, budgeting skill, and savings behaviour as independent variables, while financial attitude, financial confidence, and financial behaviour are treated as dependent variables.

Primary data were collected from 60 employees using a structured questionnaire based on a five-point Likert scale. Statistical tools such as Mean and Standard Deviation Analysis, Pearson Correlation Analysis, and One-Way ANOVA were employed to analyze the data. The findings reveal that employees possess favourable perceptions towards financial literacy dimensions and financial behaviour factors. Correlation analysis indicates a significant positive relationship between financial literacy dimensions and financial behaviour factors. The ANOVA results reveal significant variations in employees' financial behaviour based on demographic characteristics.

The study concludes that improving financial literacy among employees contributes significantly to the development of positive financial attitudes, greater financial confidence, and responsible financial behaviour. The findings provide useful implications for manufacturing organizations to design financial literacy programs that enhance employees' financial well-being and decision-making capabilities.

Author Biographies

Premalatha S

PhD Research Scholar, Department of Business Administration Annamalai University

Dr. Jothi Jayakrishnan

Professor, Research Supervisor Department of Business Administration Annamalai University

Dr. D. Sakthivel

Assistant Professor, Department of Business Administration Annamalai University

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