Financial Planning in Millennials: Assessment through moderating effect of Financial Literacy

The purpose of this study is to examine the influence of financial literacy on the financial behavior and planning outcomes of millennials, with an aim to identify potential strategies for enhancing financial education and planning among this crucial demographic segment. The study uses structured questionnaires administered to 538 millennial respondents in India, to gather data on financial literacy and personal financial planning. The data was analysed using partial least squares structural equation modelling (PLS-SEM) in Smart PLS 4.0 software. The findings indicate that a significant proportion of millennials lack fundamental financial knowledge, and this deficit significantly impacts their financial planning outcomes. Higher levels of financial literacy are associated with better budgeting, saving, and investing habits. However, gaps in financial literacy can lead to over borrowing, insufficient retirement savings, and poor investment choices. This study contributes to the existing literature by examining the moderating effect of financial literacy between personal financial requirements and financial planning among millennials.本研究旨在探讨金融素养（financial literacy）对千禧一代金融行为与规划结果的影响，以期为优化该关键人口群体的金融教育与规划工作识别可行策略。本研究采用结构化问卷对印度538名千禧一代受访者开展调研，收集其金融素养与个人理财规划相关数据。研究借助Smart PLS 4.0软件中的偏最小二乘结构方程模型（partial least squares structural equation modelling, PLS-SEM）完成数据分析。结果表明，相当比例的千禧一代缺乏基础金融知识，这一知识缺口对其理财规划结果存在显著负面影响。更高水平的金融素养与更完善的预算编制、储蓄及投资习惯呈显著正相关；而金融素养的不足则可能引发过度借贷、退休储蓄不足以及投资决策失当等问题。本研究通过检验金融素养在千禧一代个人理财需求与理财规划间的调节效应，丰富了现有相关学术文献。