IMPACT OF FINANCIAL KNOWLEDGE ON FINANCIAL INCLUSION

Abstract

Financial Inclusion, a significant concept of finance makes various financial products and services accessible and affordable to all individuals and businesses, especially those excluded from the formal financial system. One of the leading forces affecting people’s ability to access financial services is Financial Knowledge. The main aim of the study is to test and validate the Financial Knowledge and Financial Inclusion model through Structural Equation Model (SEM) and Confirmatory Factor Analysis (CFA) using AMOS software among 356 college students in Chennai. Survey method was used in the study.  Weighted Mean, t-test and Karl Pearson’s Correlation were used for the purpose of analysis. No significant difference in Financial Knowledge based on gender and stream of study were found. Financial Knowledge and Financial Inclusion were found to be positively correlated and the proposed model was found to be a good fit.