Financial Attitude and Well-being among Rural Households in Punjab

Description

DOI: https://doi.org/10.5281/zenodo.21274258

Neha and Mohit Gupta (School of Business Studies, Punjab Agricultural University, Ludhiana, Punjab)

Financial attitude is a psychological construct that reflects an individual’s beliefs, predis-positions, and values towards financial matters, including saving, investing, spending and debt management. It is an important determinant of financial behavior, and is closely linked to financial literacy. The study examines the financial attitude of rural households in Punjab. Using a structured questionnaire administered to 540 respondents across agricultural and non-agricultural households in three districts Ludhiana, Amritsar, and Jalandhar. The study used descriptive statistics, independent sample t-tests, and principal component analysis with Varimax rotation. The results reveal that rural households considered risk and return while making investment decisions (M = 4.26). Factor analysis identifies five factors: Spending, Financial training, Savings, Financial information, and Risk, which together explain 71.092% of the total variance. Especially, the usage of financial information differs significantly between agricultural and non-agricultural households.