Financial Prudence among Youth

Rajasekharan Pillai, Rozita Carlo and D’souza, Rachel

MPRA Paper from University Library of Munich, Germany

Abstract: Frugal expenditure habit is no less important than the basic illiteracies such as reading, writing and arithmetic. Present day youth are seemed to show callous expenditure, being independent, competitive and free-of-behaviour, that eventually lead them perpetually in debt. The present study explores the magnitude of financial literacy among youth focusing on expenditure and saving trends. It is understood that the youth are unwilling to get out of their comfort zone and reckless expenditure behaviour, despite of their sound knowledge of the fundamentals of financial literacy. The credit card culture is also found out to have grown phenomenally among the youth. The freedom of choice of present generation is unlimited. Hence they are being victimized in onslaught of sales and service offers and promotions in the market especially; the lure of on-line buying, trendy apparels, electronic gadgets, mobile services and others segmented products and services. It is understood that the young generation rarely practice basic financial skills, such as budgeting, frugal spending, developing a regular savings plan, or planning for long term requirements.

Keywords: financial prudence; financial literacy; financial planning of youth; credit card usage; spend thriftiness; financial portfolio of youth; spending and saving habits of youth; economic independence of youth; financial decision of youth; influence of family and peer in financial management (search for similar items in EconPapers)
JEL-codes: E21 G00 G11 (search for similar items in EconPapers)
Date: 2010-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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