Socio-Demographics Determinants of Financial Literacy: Evidence from Sivagangai District

  • Authors

    • H. Sudarsan Ph.D Research Scholar (Part-Time), Department of Banking Management, Alagappa University, Karaikudi
    • K. Alamelu Senior Professor, Department of Banking Management, Alagappa University, Karaikudi
    • Av. Karthick Teaching Assistant, Department of Computational Logistics, Alagappa University, Karaikudi
    https://doi.org/10.14419/awfprq56

    Received date: July 27, 2025

    Accepted date: September 25, 2025

    Published date: October 10, 2025

  • Behavioral Economics; Digital Financial Inclusion; Rural-Urban Disparity; Social Learning Theory; Digital Literacy

  • Abstract

    Financial literacy represents a critical determinant of economic well-being and community development, particularly in developing economies where financial inclusion remains a policy priority. This study employs a mixed-methods approach to examine financial literacy disparities between rural and urban populations in Sivagangai district, Tamil Nadu, through behavioral economics and social learning theory ‎frameworks. Data was collected from 200 strategically selected respondents (100 rural, 100 urban) using structured surveys and semi-‎structured interviews. The research reveals substantial literacy gaps: urban respondents demonstrated 92% bank account awareness compared to 78% rural, with digital banking usage showing the widest disparity (88% urban vs. 39% rural). Key barriers identified include ‎inadequate formal education (rural mean: 4.42), low digital literacy (4.50), and cultural constraints (3.98). Post-intervention analysis confirmed the effectiveness of targeted awareness programs, with both groups showing significant improvement (p < 0.001). The study con-‎contributes to financial inclusion literature by demonstrating how socioeconomic stratification intersects with geographic location to create com-‎compounding literacy disadvantages. Theoretical implications extend behavioral economics research by showing how information asymmetries ‎and cognitive biases differently affect rural versus urban financial decision-making. Policy recommendations include curriculum integration, ‎vernacular content development, and community-based peer education programs tailored to local contexts‎.

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  • How to Cite

    Sudarsan , H. ., Alamelu, K. . ., & Karthick , A. . (2025). Socio-Demographics Determinants of Financial Literacy: Evidence from Sivagangai District. International Journal of Accounting and Economics Studies, 12(6), 352-363. https://doi.org/10.14419/awfprq56