FINANCIAL LITERACY IN NEPAL: A SURVEY ANALYSIS AMONG EMPLOYEES OF THE MINISTRY OF URBAN DEVELOPMENT

Abstract

This study surveyed 400 employees among the Ministry of Urban Development of Nepal to examine their status of financial literacy and to analyze the relationship and effect of financial behavior, financial influence and financial attitude on financial literacy. It has used a descriptive and casual comparative research design. A well-structured questionnaire was utilized as the primary research tool in this study. Data analysis included the use of descriptive statistics, including measures such as mean and standard deviation, as well as advanced statistical techniques such as ANOVA, linear regression, and correlation. The findings indicated that the majority of employees had a higher degree of financial literacy in the areas of online banking services, inflation, risk and return and interest rates and they had lower level of financial literacy regarding reading and interpreting financial statements and calculating financial ratios, taxes and diversification. Majority of employees were found to compare prices while shopping and they contributed to savings regularly and invested in share under IPO. Employees were highly influenced by their personal experiences, internet, family and peers. They had positive attitude towards regular savings and most employees were afraid of loan. The study further identified that financial behavior, financial influence and financial attitude had a significant relationship with financial literacy and they had positive impact on financial literacy of employees of the Ministry of Urban Development of Nepal. This study can be useful for Nepal Rastra Bank, Securities Board of Nepal and other organizations for introducing new policies and programs for improving financial literacy of employees. Further researches can be conducted covering more variables such as social variables, economic variables, etc. and other sectors as well. Key words: Financial Attitude, Financial Behavior, Financial Influence, Financial Knowledge, Financial Literacy, Employees, the Ministry of Urban Development, Nepal