A Study of Financial Literacy in a Changing Financial Era: An Intergenerational Study of Gen X, Gen Y, and Gen Z in Bengaluru

Abstract

Financial literacy has become a basic skill as more money decisions move onto phones, yet little is known about how it differs across generations in Indian cities. We surveyed 235 working adults in Bengaluru from Generation X, Generation Y and Generation Z. Literacy was scored from 0 to 100 as the mean of financial knowledge, attitude and behaviour. The analysis used descriptive statistics, one-way ANOVA, multiple regression, confirmatory factor analysis (CFA), structural equation modelling (SEM) and a comparison of structural paths across generations. Mean literacy was 50.04 (SD = 5.90), and 91.5% of respondents landed in the moderate band. Generations did not differ on composite literacy, F(2, 232) = 1.91, p = .151, η² = .016, or on any single dimension, although Generation X had the highest knowledge and behaviour means. A regression with demographic, economic, digital and awareness predictors explained almost nothing, F(22, 212) = 0.65, p = .883. The path from literacy to decision-making was small and non-significant (β = −0.10, p = .884) and did not vary by generation. Every scale had very low internal consistency (α ≤ .10) and the CFA failed to show convergent validity, so the results cannot support firm substantive conclusions. The paper gives a baseline for Bengaluru, finds no clear generational split in measured literacy, and argues that future work needs stronger multidimensional instruments.