A Stuyd on Bhutanese Living in Thimphu City - 3226 Words

Research Topic: Financial Literacy of Bhutanese -A study on Bhutanese living in Thimphu City Chapter I Background of the study Organization for Economic Co-operation and Development (OECD) International Network on Financial Education (INFE) has defined financial literacy as â€Å"a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing†. Bhushan and Medury (2013) stated that financial literacy helps individuals to improve their level of understanding of financial matters which enables them to process financial information and make informed decisions about personal finance. It was found that well-functional financial markets depend on participants making informed decisions (Agarwalla et al., 2012). Moreover, Bhushan and Medury (2013) found that financial education empowers individuals to take their financial decisions in a better and effective way. Financial literacy is increasingly important as it has become essential that consumers acquire the skills to be able to survive in modern society and cope with the increasing diversity and complexity of financial products and services (Bird, 2008). However, various researches including OECD survey and International Financial Literacy Barometer (IFLB) have shown that the levels of financial literacy worldwide are unacceptably low. Further, it was also found that developing countries have low level of financial literacy