You are here: Home » Economy & Policy » News
Business Standard

Long term training improves financial literacy among rural women: IIM-A study

The study states that while the effectiveness of training is high for financial knowledge and financial behavior, it is only marginal for financial attitude

Vinay Umarji  |  Ahmedabad 

While training is effective in improving financial literacy in the long-term (18 months), the effectiveness varies across the three dimensions of financial literacy viz., financial knowledge, financial behaviour and financial attitude, says a study by the Indian Institute of Management, Ahmedabad (IIM-A). The study states that while the effectiveness of training is high for financial knowledge and financial behavior, it is only marginal for financial attitude. The study confirms the value of training for the most disadvantaged segment. Women with low level of family income and low level of education benefit significantly from the training imparted.

Titled 'Effectiveness of Financial Literacy Interventions in Improving Financial Literacy among Rural Women in North India', the study has been conducted by four IIM-A faculty members including Sobhesh Kumar Agarwalla, Samir K. Barua, Joshy Jacob, and Jayanth R. Varma, with financial support from Citi Foundation.

"Training is effective in improving financial literacy in the long-term (18 months). However, the effectiveness varies across the three dimensions of financial literacy. While the effectiveness is high for financial knowledge and financial behavior, it is only marginal for financial attitude. Training is effective in improving financial literacy in the short-term (1-3 months). The effectiveness is the highest for financial knowledge and the least for financial attitude," the study stated while adding that there is a significant decline in financial knowledge and financial behavior over time.

In case of financial attitude, the long term retention of learning is not statistically significant. The decline over time of financial literacy points to the need for refresher courses to enhance retention of learning in the long-term. Such courses ought to be based on sharing of experiences of participants in applying some of the learning from the programs.

Other findings of the study included that the use of alternate techniques such as movies and games in the training programs does not have a significant impact on financial literacy. This is because the positive influence of games on financial behavior and financial knowledge is accompanied with negative influence on financial attitude.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 02 2014. 20:57 IST
RECOMMENDED FOR YOU
.