Economics is learnt in the family: revaluing family influence on financial behaviour in India

Abstract

Family economics primarily studies the influence of the family on consumption and investment behaviour through the generations. Research has clearly shown that the family should be the source for most of a youth's financial knowledge. This study attempts to fill a gap as scant literature is available on the influence of the family on financial behaviour of the youth in India. The interviews were largely administered in person and in a few cases through an email or on the phone. The results show that only 34% of parents were having discussions with their offsprings on financial planning and 42% of the respondents felt they were 'aware and educated enough' to impart financial training to their offsprings. 25% of the parents admitted to their lack of financial knowledge. Family involvement in financial education programs is not at all well developed in India. The study gives several recommendations in this regard.