Financial Behavior Across Demographic Groups: A Comparative Study of Rural and Urban Households in Punjab

Description

DOI: https://doi.org/10.5281/zenodo.21350244

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

The study provides a comparative assessment of financial behaviour between rural and urban households of Punjab. The data was collected from the 160 respondents from each district, namely, Rupnagar, Ludhiana, and Fazilka, thereby making a total sample of 480 respondents equally divided between rural and urban samples. For data collection, a research instrument, i.e., a questionnaire, was developed. The study used an independent-samples t-test and one-way ANOVA to compare financial behavior mean scores across various demographic categories. Rural respondents represented more cautious and evaluative behavior while making decisions, while urban respondents represented better regular saving habits than rural respondents. The significant difference was observed only for education, indicating that education has a vital role in shaping financial behavior, while other demographic variables, such as household characteristics and economic factors, have limited influence on financial behavior. Thus, the findings highlight the necessity of financial education programs since better education can lead to favorable financial behaviors, which ultimately helps in achieving financial well-being of the individuals of Punjab.