Financial Literacy of Employees in Ilam Municipality

Abstract

The purpose of the study is to examine employee’s financial literacy; the impact of demographic, educational and personality characteristics on financial literacy. This study surveys 230 employees in Ilam municipality. Mean, Standard deviation, ANOVA and logistic regression are used in carrying out analysis. Results show that most of the employees have basic level of financial knowledge but they lack in understanding of share market, tax and insurance. The study further identified age, service sector, education level, education stream, financial behaviour and financial attitude as determinants of financial knowledge. And financial knowledge is unaffected by gender, marital status and income. It is concluded that employees have basic level of financial knowledge. However, overall financial knowledge of the employees is affected by some of their demographic, educational and personality characteristics

Key words: Financial Literacy, Financial Behaviour, Financial Attitude, Financial Knowledge.