Jou nal o Resea ch and De elopmen
Pee Re iewed In e na ional, Open Access Jou nal.
ISSN : 2230-9578 | Websi e: h ps://j d b.o g Volume-17, Issue-9(I) | Sep - 2025
241
The Financial Li e acy in P omo ing S uden En ep eneu ship Li e-Long in India
D . Agale S.V1, D . Kalam P.G.2, D . Sa sa e S. M3
123Assis an . P o esso , Depa men o Comme ce,
Babu aoji Adaska ,
Maha idhyalaya Kaij
Email:
sudhi [email protected]
Manusc ip ID:
JRD -2025(I)-170954
ISSN: 2230-9578
Volume 17
Issue 9(I)|
Pp. 241-243
Sep . 2025
Submi ed: 9 Aug. 2025
Re ised: 20 Aug. 2025
Accep ed: 20 Sep . 2025
Published: 30 Sep . 2025
Abs ac
In oday’s apidly e ol ing Indian economy, inancial li e acy has eme ged as a c i ical li e skill,
pa icula ly o he younge gene a ion. Despi e i s impo ance, su eys indica e ha only a limi ed
pe cen age o Indians a e inancially li e a e, which o en esul s in poo inancial decisions and missed
oppo uni ies. This pape examines he ole o inancial li e acy in shaping en ep eneu ial in en ions among
s uden s, highligh ing i s impac on inancial independence, decision-making, and long- e m secu i y. Using
seconda y da a and a quan i a i e esea ch app oach, he s udy explo es how inancial educa ion equips
s uden s wi h budge ing, sa ing, in es ing, and money managemen skills necessa y o en ep eneu ial
success. The indings emphasize ha inancial li e acy no only enhances indi idual con idence and
esponsibili y bu also s eng hens en ep eneu ial capaci y by enabling access o esou ces and in o med
decision-making. I concludes ha in eg a ing inancial educa ion in o he academic cu iculum is i al o
nu u ing en ep eneu ial abili ies and os e ing sus ainable economic g ow h in India.
Keywo ds
Financial Li e acy; S uden En ep eneu ship; Financial Educa ion; Money Managemen ; You h
Empowe men ; India; Financial Independence; Decision-Making; En ep eneu ial Skills; Sus ainable
De elopmen
In oduc ion
In a apidly e ol ing economy like India, inancial li e acy has become inc easingly
impo an . As inancial p oduc s and se ices become mo e complex, he need o a s ong
ounda ion in inancial managemen is c ucial. Howe e , inancial li e acy in India
emains
a challenge, pa icula ly among he you h.
Acco ding o a su ey by he Na ional Cen e
o Financial Educa ion (NCFE) only 27% o Indians a e inancially li e a e. This lack o
inancial knowledge can lead o poo inancial decisions, such as alling in o deb aps o
missing ou on impo an in es men oppo uni ies. Recognizing his, he go e nmen and
he Rese e Bank o India (RBI) ha e launched a ious ini ia i es o p omo e inancial
educa ion and awa eness. This a icle explo es he concep o inancial li e acy, i s
impo ance, and he key ini ia i es by he go e nmen , RBI, and o he ins i u ions aimed a
imp o ing inancial li e acy in India.
Financial li e acy is essen ial o gaining knowledge o
inance and money- ela ed aspec s. Financial G ow h and de elopmen
can be achie ed
h ough dedica ion and de e mina ion owa ds a pa icula hing.
I is also e y impo an
o kids o ha e p ope inancial li e acy a an ea ly age
.
Financial li e acy also helps in
ge ing p ope li e knowledge
.
The jou ney o li e can be unde s ood by implemen ing
inancial decisions, which will help in achie ing u u e goals
.
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Websi e:
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DOI:
10.5281/zenodo.16885235
C ea i e Commons (CC BY-NC-SA 4.0)
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Add ess o co espondence:
D . Agale S.V, Assis an . P o esso , Depa men o Comme ce, Babu aoji Adaska ,
Maha idhyalaya Kaij
How o ci e his a icle:
Agale S.V, Kalam P.G, Sa sa e S. M. (2025). The Financial Li e acy in P omo ing S uden
En ep eneu ship Li e-Long in India. Jou nal o Resea ch & De elopmen , 17(9(I)),241-243
O iginal A icle
Jou nal o Resea ch and De elopmen
Pee Re iewed In e na ional, Open Access Jou nal.
ISSN : 2230-9578 | Websi e: h ps://j d b.o g Volume-17, Issue-9(I) | Sep - 2025
242
Financial li e acy isn’ only ela ed o business; i also plays a c ucial ole in educa ion and daily li e.
Financial li e acy also helps in achie ing sho - e m and long- e m goals
.
Wha is Financial Li e acy?
Financial li e acy e e s o he abili y o unde s and and e ec i ely use a ious inancial skills, including
pe sonal inancial
managemen , budge ing, in es ing, and inancial planning. I is he ounda ion upon which
indi iduals can build a secu e
inancial u u e, enabling hem o make in o med decisions abou hei money.
Financial li e acy is no jus abou managing
expenses and sa ing; i encompasses a b oade unde s anding o
inancial p oduc s, se ices, and he isks and oppo uni ies
hey p esen .
Impo ance o Financial Li e acy among S uden s
Financial educa ion makes s uden s mo e ac i e and p epa es hem o u u e oppo uni ies. Below, you can check
he
impo ance o inancial educa ion o s uden s.
Financial Independence:
Budge ing, sa ing, and in es ing a e all skills ha inancial li e acy eaches s uden s,p epa ing hem o inancial
independence.
They a e be e able o make inancial decisions and s ay ou o deb as a esul .
Unde s anding o C edi and Debi :
S uden s who a e inancially li e a e a e also augh abou c edi and debi ca ds as well as hei ope a ion.
Fo upcoming loans, c edi ca ds, and mo gages, hey lea n how o es ablish and p ese e a high c edi sco e.
Financial Secu i y:
Financially li e a e people can c ea e a plan o secu e hei inancial u u e and a e be e able o handle inancial
isks such as
un o eseen expenses o losing hei jobs.
Money Managemen Skills:
In o de o achie e g ea e inancial s abili y, inancially li e a e people unde s and how o e ec i ely manage
c edi and deb , sa e, in es and c ea e a budge .
Boos Con idence:
An inc eased sense o inancial empowe men can esul om inancial li e acy, which can inc ease one’s
con idence in one’s
capaci y o handle money.
All hings conside ed, ha ing a solid unde s anding o inance is a g ea li e skill ha can help you become mo e
success ul and
secu e inancially.
Types o Finance
The e a e di e en domains o inance ha deal wi h di e en a enas in li e, including he ollowing:
Pe sonal inance:This deals wi h managing ou day- o-day inancial needs. Th ough his, we a e able o manage
ou inances on an e e yday basis. Fo e e y indi idual, pe sonal inance is one o he mos impo an subjec s o
lea n.
Co po a e inance:These e e o ac i i ies and ansac ions ha a e ela ed o aising capi al o c ea ing,
de eloping, acqui ing and ope a ing a business. This domain o inance is ela ed o making company- ela ed
decisions wi h mone a y and inancial impac . Co po a e inance is conce ned wi h maximising sha eholde alue
h ough sho - e m and long- e m inancial
planning. I anges om capi al in es men o ax conside a ions.
Public inance:This domain o inance is ela ed o alloca ing inances o he pu pose o de elopmen . He e, he
unds a e
bo owed om banks, insu ance companies, he go e nmen and di idends om companies.
Li e a u e Re iew
Aga wal e al., (2017), Thus, each indi idual has he esponsibili y in managing his own pe sonal inance and
de eloping an unde s anding on he inancial ma ke in o de o secu e his inancial well-being.
Cha e jee, A.V. (2018), I is he e o e, a need o you h and e e y s uden o be gi en he chance o be exposed o
inancial educa ion in o de o hem o ha e skills, mo i a ion, and con idence o apply he knowledge and abili y
o make e ec i e decisions.
Khai e M. (2015), Apa om ha , en ep eneu ship has also been as one o he go e nmen 's ocuses owa ds
you h g ow h. En ep eneu ship ep esen s an impo an sou ce o employmen and is i al o economic and
social g ow h by c ea ing a success ul business.
Objec i es o he Resea ch Pape
•
To examine he ela ionship be ween inancial li e acy and s uden en ep eneu ship
•
To s udy he le el o awa eness o Financial Li e acy among you h in India
Jou nal o Resea ch and De elopmen
Pee Re iewed In e na ional, Open Access Jou nal.
ISSN : 2230-9578 | Websi e: h ps://j d b.o g Volume-17, Issue-9(I) | Sep - 2025
243
Me hodology
This s udy is conduc ed using a quan i a i e esea ch me hod and adop s seconda y sou ces o collec da a as pa
o he ini ial measu emen o ob ain iew conce ning he ela ion o inancial li e acy wi h en ep eneu ship
in en ion
Finance as a Knowledge
Finance basics include de eloping, managing, and analyzing unds and in es men s. I comp ises p ojec ed cash
lows o und cu en p ojec s ia c edi and deb , secu i ies, and in es men s. Because o i s empo al componen ,
inance is in ima ely ied o he ime alue o money, in e es a es, and o he ela ed subjec s.
The en ep eneu ial choice o Decision Making
The en ep eneu ial choice in a compe i i e economy wi hou unce ain y and wi h pe ec in o ma ion may be
in e p e ed as any economic choice, o example, a consume choice. This easoning can be applied in he
en ep eneu ial choice wi hou unce ain y. Suppose ha in socie y he e a e only wo job‟s si ua ions, being
employed o being an en ep eneu , and ha hese si ua ions can be dis inguished by ou cha ac e is ics
(managemen , accoun abili y, independence, sociabili y, e c. The job o he en ep eneu is cha ac e ized by high
le els o managemen , accoun abili y, independence and sociabili y, and ice e sa o he employee. In his case,
he agen s mus make a disc e e choice be ween bo h op ions depending on hei p e e ences i.e. how hey alue
cha ac e is ics o each o hese op ions. I he occupa ional choice (being sel -employed o an employee) was
along a con inuum, hen indi iduals would ha e o eason a he ma gin. An op imal decision would be such as a
small a ia ion would no add any hing mo e. Typically, each s a us p esen s an oppo uni y cos which depends
on he p e e ences o agen s i.e. how hey alue each o hese a ibu es. A pe son who alues he ou
cha ac e is ics o he en ep eneu p e e s he si ua ion o he en ep eneu because he will ge mo e u ili y om
he en ep eneu s a us han om he employee s a us. In his case, he choice is easily done bu i is ne e heless
ex ao dina y ha such si ua ions a ise because he e a e ac ually many mo e ea u es ha in ou simpli ied
example. One can imagine people who dislike he ask o managemen bu who app ecia e he sense o
esponsibili y and independence. Some will choose o become en ep eneu s because, consis en wi h hei
p e e ences, he cos o hem ( o bea he managemen ’s esponsibili ies) is less han he bene i s hey ob ain
om esponsibili y and independence. Ano he way o exp ess i is o say ha he oppo uni y cos o gi ing up
independence and esponsibili y is g ea e han he bene i o employee s a us, which does no ha e o bea he
esponsibili ies o managemen . O he people wi h di e en as es will p e e he opposi e employee s a us. Fo
hem he bene i s o non-managemen will mo e han o se he disad an ages o he loss o independence and
esponsibili y.
En ep eneu ial abili ies o access esou ces
The e is he e o e some skills o en ep eneu s. In his ega d, Lucas (1978) challenges he s anda d heo y o
which he U- shape o he cu e p oduc ion cos s de e mines bo h he size, he numbe o companies and en y and
exi o he i ms on he ma ke 4 . I is mo e app op ia e o pos ula e ha he e a e indi iduals wi h a ious
manage ial capaci ies and ha he dis ibu ion o manage ial capaci y is explana o y o he a ious sizes o
companies.
Conclusion
This s udy examines concep s ela ed o inancial li e acy and he signi ican in luence o inancial li e acy on
en ep eneu ship in en ion among s uden s in India. Along wi h he de elopmen o he economy, businesses, and
he de elopmen o he communi y, ocus should also be gi en o en ep eneu s and hei skills in inancial
managemen . Uni e si ies' educa ion cu iculum should be imp o ed in o de o con ibu e o his skill among
s uden s. S udies e ealed ha good inancial li e acy among he younge gene a ion is an impo an elemen in
achie ing a b igh e omo ow, as you h ha e o li e a longe li e.
Re e ences
1.
Aga wal e . Al.(2017). Financial li e acy among wo king young in u ban India. IMA Wo king Pape . No. 2013-
10-02, pp. 1-27.
2.
Cha e jee, A. V. (2018). Bo owing Decisions o C edi Cons ained Consume s and he Role o Financial
Li e acy. Economic
Bulle in. 33(1), pp. 179-191.
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Khai e, M. (2015). Young and no money? Ne e mind: The ma e ial impac o social esou ces on new en u e
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