FINANCIAL LITRERACY AND INVESTMENT DECISIONS OF SOFTWARE ENGINEERS IN

HYDERABAD

Srinivas Barla*1

Affiliations
*
Research Scholar, Department of Commerce, Osmania University, Hyderabad - 500007, Telangana, India.
1
Assistant Professor, Department of Commerce and Management, S. P College, Hyderabad – 500025.

ABSTRACT

Despite increasing interest in and funding for financial literacy and financial education programs
in the private and public sectors, the field of financial literacy still has a major obstacle to
overcome: the lack of a widely disseminated measure of financial literacy, developed through
rigorous psychometric analyses. Financial literacy simply defined as a combination of
awareness, knowledge, skills and behavior necessary to make an individual be financially well-
off, financially educated citizens are more active on the financial market, have a smaller amount
of overdue loans in bank, and more carefully plan their retirement. Increasingly, individuals are
in charge of their own financial security and are confronted with ever more complex financial
instruments. However, many individuals are not well equipped to make sound saving decisions.
Failure to plan for retirement, lack of participation in the stock market, and poor borrowing
behavior can all be linked to ignorance of basic financial concepts. Financial literacy of an
individual is their level of understanding of financial matters which enables them to process
financial information and make informed decisions about personal finance. It is difficult for a
common man to understand the risk associated with the new age financial products. In order to
understand risk and return associated with these products, a minimum level of financial literacy
is a must. An attempt has been made through this paper to examine the relationship between
financial literacy of salaried individuals especially engineers in Hyderabad and their awareness
regarding financial expenditure matter. Also the relationship between financial literacy and
investment behavior of salaried individuals is studied.
KEYWORDS

Communication; Conflict Management; Intergroup Relations; Work Environment; Structure.

JEL CLASSIFICATION
G1, G11, L39, Y0, Z0

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