• ASHISH VARUGHESE
• Ranjith Mathew Abraham

Role of Demographic Factors in Financial Literacy and Financial Planning among Businessmen: A study among Small Business Owners 1. Dr. Ashish Varughese Assistant Professor in Commerce, Bishop Moore College, Mavelikara ashish.varghese88@gmail.com Mob – 9446708236 2. Dr. Ranjith Mathew Abraham Associate Professor in Economics, Bishop Moore College, Mavelikara Abstract Financial literacy and financial planning are one of the most important skills to be attained by all. Lack of financial literacy and financial Planning are the reason for the failure of most of the business and suicides due to debt trap. According to a global survey, about 73 percent of Indian adults are financially illiterate and it is consistently poor as compared to the rest of the world. Financial literacy and good financial Planning help to manage the financial fund, effectively save enough for future need, invest surplus effectively and also helpful in avoiding high levels of debt that might result in default, bankrupt which in turn leads to suicides. The financially competent persons can perform the role of a business men more effectively by managing the financial resources, avoiding/reducing the expenses through financial discipline. This study is an attempt to examine the financial literacy and financial Planning of small business. Study found that majority of the respondents not financial literate. Majority of the respondents have the habit of long term planning for savings and investment but they don’t have the financial habits of long-term planning for: Expense/Income, identifying financial products and the risk/return characteristics and day to day financial management and budgeting. Based on Chi-square test it is observed that age and education has significant impact on the level of financial literacy: formal education has increased the financial literacy, youngsters are more financially literate. It is observed that there is still need for formal and informal financial education and training for increasing the financial literacy and financial Planning. It is high time to introduce financial literacy in the curriculum at the school and college level. If formal mechanism is not possible, informal ways may also be used. The newspapers and other media should also take necessary steps to educate the public about the basic concepts of financial literacy. NGOs and educational institutions can play a good role to eradicate this illiteracy that restrain the economic development. Key Words – Financial Literacy, Financial Planning, Small Business JEL Classification – C1, E7 and G5

Financial Literacy, Financial Planning, Small Business

"Role of Demographic Factors in Financial Literacy and Financial Planning among Businessmen: A study among Small Business Owners ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 3, page no.e68-e77, March-2023, Available :http://www.jetir.org/papers/JETIR2303410.pdf

"Role of Demographic Factors in Financial Literacy and Financial Planning among Businessmen: A study among Small Business Owners ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 3, page no. ppe68-e77, March-2023, Available at : http://www.jetir.org/papers/JETIR2303410.pdf