Financial Literacy and Saving Behavior Among Low-Income Workers: Evidence from Coimbatore District

Abstract

Saving behavior plays a crucial role in enhancing the financial security of low-income workers, yet their ability to save is often constrained by limited financial knowledge, unstable income, and restricted access to financial services. This study examines the role of financial literacy as a key predictor of saving behavior among low-income workers in Coimbatore district, Tamil Nadu. Using a descriptive and analytical research design, primary data were collected from 200 respondents through a structured questionnaire. Financial literacy, income stability, access to financial services, and financial attitude were treated as independent variables, while saving behavior was examined through saving regularity, saving amount, and saving planning orientation. Correlation and multiple regression analyses were employed to test the relationships among variables. The findings reveal that financial literacy has a significant positive influence on saving behavior, with financial attitude emerging as the strongest predictor. Income stability and access to financial services also significantly enhance saving practices. Demographic factors such as education and income level further moderate saving behavior, while gender does not exhibit a significant effect. The study highlights the need for integrated policy interventions that combine financial education, behavioural orientation, and financial inclusion to improve saving outcomes among low-income workers