Impact of financial literacy models on the financial behavior of individuals: An empirical study on the Indian context

Abstract

Abstract Different financial literacy models adopted by formal and semi‐formal institutes have dissimilar impacts on individuals' decision‐making and financial behavior. Individuals who participated in semi‐formal financial literacy training are more likely to borrow than those who participated in the formal financial literacy training program. Decomposition suggests that people who participated in the formal financial literacy program are more likely to subscribe to insurance services than people trained from semi‐formal financial literacy program. Individuals who participated in the semi‐formal financial literacy training program are more satisfied with their current financial situation than those who participated in the formal literacy training program.