Impact of financial literacy training on the financial decisions of rural households in Nepal

Shyam Karki, Adino Andaregie () and Isao Takagi ()
Additional contact information
Adino Andaregie: Soka University
Isao Takagi: Soka University

International Review of Economics, 2024, vol. 71, issue 2, No 2, 149-173

Abstract: Abstract Financial education plays a significant role in poverty reduction and sustainable economic growth. It also increases individuals' financial well-being. Unfortunately, global financial literacy is low, and in developing countries, it is far below the global average. Nepal is a developing country with low financial literacy. Therefore, this study aimed to analyze the impact of financial literacy training on financial literacy levels and financial decisions among 399 randomly selected rural households in Bhojpur District, a rural area in Nepal. Multiple linear and logit regression models were used to analyze the data. The results revealed that financial literacy training increased the financial literacy level of training participants compared with that of non-participants. Education, financial literacy training, and migration of family members (personal migration history and plans to migrate) were other significant predictors. Respondents' financial and economic behavior was influenced by their financial literacy level, sex, age, education, family size, whether the respondent lives with parental family, and whether the respondent has migrated family members. The study suggested well-organized and inclusive financial literacy training program interventions to improve rural individuals' financial and economic decisions.

Keywords: Financial literacy; Impact; Financial behavior; Multiple regression; Logit (search for similar items in EconPapers)
JEL-codes: G50 G51 G53 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12232-023-00438-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:inrvec:v:71:y:2024:i:2:d:10.1007_s12232-023-00438-3

Ordering information: This journal article can be ordered from
http://www.springer. ... cy/journal/12232/PS2

DOI: 10.1007/s12232-023-00438-3

Access Statistics for this article

International Review of Economics is currently edited by Luigino Bruni

More articles in International Review of Economics from Springer, Happiness Economics and Interpersonal Relations (HEIRS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().