In many developing countries can't buy and keep food at least a week ,but they are spending money more than what needed basic life.In this situation how financial literacy affecting in spending behavior .
It depends on how you define financial literacy - for instance, is the country in question liberalized? if so, financial literacy would be to understand to the extent to which the country has difficulty in generating aggregate demand from public investment.
I think ıt depends on what you know about financial literacy. In emerging market or developing countries people couldn't decide to save many for something because they don't have enough information about financial literacy. As a solution, we must tell some information about financial literacy.
Financial literacy helps people make decisions according to the predictions of the economic theory i.e. rational economic behaviour. In these respect, since people according to the economic theory are utility maximizers, financial literacy helps people to minimise costs and maximis benefits.
Financial literacy is quite essential for reaching all the segments of the people. In India many steps have been initiated through various programmes and even the new scheme such as Jan Dhan Yojna is started to reach the masses.
African Friends and Money Matters is a book that explains the culture behind why and how people spend money in African nations, which is quite different than Western nations.
Financial Literacy and spending behavior are closely linked. That is why, a lot of efforts are being made for financial inclusion,particularly in a country like India.The spending behavior of a financially literate person is bound to be different.
Financial Literacy is about acquiring financial skill and application of the skill to make the right financial decisions. So, to be financially literate is to have good spending behaviour. Financial literacy comprises of three main variables namely; financial knowledge, financial attitude, and financial behaviour. financial knowledge shapes the attitudes and the attitudes in turn influence the behaviour.
The findings of research shows that respondents who have low financial literacy leads to higher in spending behavior. ... Findings shows that the age above 50 years are high in spending behavior and low in financial knowledge because of low awareness of financial literacy as compared to the younger age group people.
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