Are financially included financially literate too: Evidence from non-teaching employees of universities

Since effective provision of financial education requires evidence on the current levels of financial knowledge, this paper provides an evidence on the current financial literacy among non-teaching employees of universities in the state of Punjab. The authors find low level of financial literacy among employees though all of them are financially included. As much as 72 per cent employees had poor financial literacy and 16 percent had fair financial literacy. Even in terms of different dimensions of financial literacy such as interest, compounding, inflation, time value of money or basic financial principles, employees largely had poor or fair financial literacy. Analysis further showed a strong positive association between level of financial literacy and educational qualifications, monthly income, monthly family income of the employee. However, no association existed between level of financial literacy and the age, family size, or the number of dependents in the family of an employee.