Financial Literacy, Exposure, and Decision-Making: Institutional Differences in Behavioural Biases Among Indian Adolescents

International Journal of Humanities and Social Science

© 2026 by SSRG - IJHSS Journal

Volume 13 Issue 1

Year of Publication : 2026

Authors : Yukti Dahiya

10.14445/23942703/IJHSS-V13I1P103

How to Cite?

Yukti Dahiya, "Financial Literacy, Exposure, and Decision-Making: Institutional Differences in Behavioural Biases Among Indian Adolescents," SSRG International Journal of Humanities and Social Science, vol. 13,  no. 1, pp. 31-36, 2026. Crossref, https://doi.org/10.14445/23942703/IJHSS-V13I1P103

Abstract:

As Indian adolescents are increasingly engaged with digital financial systems, concerns have emerged regarding unequal access to financial literacy education and its implications on decision-making behavior. This study examines whether differences in financial literacy exposure across government, private, and low-cost private schools are related to variation in behavioral decision-making among Indian adolescents. Drawing on a behavioral economics framework, this study looks at financial literacy within broader institutional and educational contexts. Using a cross-sectional comparative design, primary data were collected from 120 students across three types of schools through a structured questionnaire and choice-based behavioral tasks assessing present bias, overconfidence, and risk preference. Financial literacy exposure was measured using a composite index capturing curricular content, pedagogical approach, and opportunities for practical financial engagement. The results show significant differences in financial literacy exposure across school types, with higher exposure associated with lower present bias and overconfidence. The findings of the study will give school administrators and policy makers valuable information by demonstrating how institutional differences in schooling significantly shape the behavioral foundations of financial decision-making and stress the importance of application-oriented as well as behaviorally informed financial literacy programmes in Indian schools.

Keywords:

Adolescent decision-making, Behavioral economics, Financial literacy, Present bias, Risk preference.

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