Early Financial Literacy Education as a Catalyst for Lifelong Wealth Creation: A Framework Linking Saving Behaviour, Mutual Fund Investment Intentions, and Financial Independence among Indian Students
Research Summary
Proposes the Lifelong Financial Literacy and Wealth Creation Framework (LFWCF), arguing that structured financial education should begin at school rather than in adulthood, and links early saving habits and mutual-fund investment intentions to long-term financial independence among Indian students.
Abstract
Financial literacy has become an essential life skill for promoting responsible financial decision-making, disciplined saving, informed investing, and long-term financial well-being. Despite growing emphasis on financial education worldwide, structured financial literacy remains inadequately integrated into school and higher education curricula in India. As a result, many students enter adulthood with limited knowledge of budgeting, saving, investing, mutual funds, retirement planning, and wealth creation, leading to poor financial decisions and delayed investment behaviour. Although previous studies have examined financial literacy, saving behaviour, investment intentions, and retirement planning independently, limited research has proposed a comprehensive framework linking early financial literacy education with lifelong wealth creation and financial independence. This study adopts a qualitative conceptual research approach based on a systematic review and synthesis of educational policies, behavioural finance theories, government reports, international publications, and peer-reviewed literature. Drawing upon Human Capital Theory, the Theory of Planned Behaviour, the Life-Cycle Hypothesis, the Behavioural Life-Cycle Theory, and the Financial Capability Framework, the study proposes the Lifelong Financial Literacy and Wealth Creation Framework (LFWCF), which explains the progression from early financial literacy education to financial knowledge, financial discipline, saving behaviour, mutual fund investment intentions, wealth creation, and financial independence. The study argues that financial literacy should be introduced as a lifelong educational process beginning at the school level rather than as an intervention during adulthood. It recommends integrating structured financial literacy into school and higher education curricula to strengthen financial capability, encourage systematic investment behaviour, and promote long-term wealth creation. The proposed framework offers a foundation for future empirical research and provides practical implications for educators, policymakers, financial institutions, and curriculum developers seeking to build a financially informed, investment-ready, and economically resilient generation.
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