IMPACT OF SOCIOECONOMIC AND DEMOGRPHIC VARIABLES ON FINANCIAL LITERACY: A CASE OF PAKISTAN

Abstract

The purpose of this study is to determine the impact of socioeconomic and demographic variables on the financial literacy in Pakistan. For this, a survey questionnaire formulated through the variables include age, gender, marital status, occupation, education level, father’s education level, mother’s education level, individual income and family income. Dependent variable, financial literacy was measured through the financial topics; division, time value of money, interest paid on loan, calculation of interest plus principle, compound interest, risk and return, definition of inflation and diversification. The respondents of the survey was student age above 20 years old. 120 of the students participated in this research. The results showed 80% of the male students have high financial literacy and 63% of the female students have high financial literacy. It is also identified that females have less financial literacy as compared with males.