Financial knowledge, attitude and investment practices among Indian doctors

Authors

  • Aneesh S. Tambolkar Department of Management, MIT World Peace University, Kothrud, Pune, Maharashtra, India
  • Isha A. Tambolkar Department of Community Medicine, Byramjee Jeejeebhoy Government Medical College and Sassoon General Hospital, Pune, Maharashtra, India http://orcid.org/0000-0002-4709-883X
  • Manas V. Pustake Department of Community Medicine, Grant Government Medical College and Sir JJ Group of Hospitals, Mumbai, Maharashtra, India
  • Purushottam A. Giri Department of Community Medicine, IIMSR Medical College, Jalna, Maharashtra, India
  • Punita Raval Financial and Investment Advisor, Punita Raval and Associates, Pashan, Pune, Maharashtra, India

DOI:

https://doi.org/10.18203/2394-6040.ijcmph20213198

Keywords:

Financial knowledge, Financial attitude, Financial practices, Doctors

Abstract

Background: Doctors are particularly vulnerable to financial problems because of their unsatisfactory levels of financial knowledge and the lack of awareness in terms of investments. This study aimed to evaluate financial knowledge, attitude and investment practices among Indian doctors.

Methods: An online questionnaire based cross-sectional study was conducted across 286 registered Indian medical practitioners (N=286). The data was collected by a pre-validated online questionnaire. The financial knowledge score was calculated using 4 questions to determine financial knowledge. The attitude was assessed using responses to 4 questions on investment using Likert scale. Financial practices were determined using responses to their preferred investment options. Data was analyzed using non-parametric tests (Kruskal Wallis test, median value), Chi-square test and Pearson’s coefficient.

Results: It was found that male doctors had higher financial knowledge as compared to female doctors (p=0.011). Financial knowledge was significantly associated with the age (p≤0.0001) of the study population. The influence of the nature of employment over the financial attitude of Indian doctors was statistically significant (p=0.009). A statistically significant association was seen between financial knowledge and financial practices (p=0.012).

Conclusions: There is a need to create an optimal level of financial awareness among Indian doctors. Increasing the financial knowledge of doctors through financial awareness programs initially may have a positive implication on their financial practices later on.

References

Varela-Candamio L, Enríquez-Díaz J. Evaluating financial and fiscal knowledge for an inclusive society. Emerging tools and strategies for financial management. IGI Global; 2020: 280-300.

Haque A, Zulfiqar M. Women’s economic empowerment through financial literacy, financial attitude and financial wellbeing. Int J Bus Soc Sci. 2016;7(3):78-88.

Liebermann Y, Flint-Goor A. Message strategy by product-class type: a matching model. Int J Res Mark. 1996;13(3):237-49.

Rai K, Dua S, Yadav M. Association of financial attitude, financial behaviour and financial knowledge towards financial literacy: a structural equation modeling approach. FIIB Bus Rev. 2019;8(1):51-60.

Shim S, Xiao JJ, Barber BL, Lyons AC. Pathways to life success: a conceptual model of financial well-being for young adults. J Appl Dev Psychol. 2009;30(6):708-23.

Sohn SH, Joo SH, Grable JE, Lee S, Kim M. Adolescents’ financial literacy: The role of financial socialization agents, financial experiences, and money attitudes in shaping financial literacy among South Korean youth. J Adolesc. 2012;35(4):969-80.

Ricciardi V. A literature review of risk perception studies in behavioral finance: the emerging issues. J Appl Dev Psychol. 2007;28:324-9.

Bar-Or Y. Empowering physicians with financial literacy. J Med Pr Manage. 2015;31(1):46-9.

Luckett CA. Personal bankruptcies. Fed Res Bull. 1988;74:591.

Heck RK. Identifying insolvent households. J Home Econ. 1980;72(4):14-7.

Hira T. Socio-economic characteristics of families in bankruptcy. Can Home Econ J Rev Can Econ Fam. 1982:124-7.

Gennaioli N, Shleifer A, Vishny R. Money doctors. J Finance. 2015;70(1):91-114.

Lawyer JH. Managing Debts. J Home Econ. 1977;69(1):16-7.

Klapper L, Lusardi A, Oudheusden PV. Financial literacy around the world. Glob Fin Literacy Surv. 2016:4-27.

Eagly AH, Chaiken S. The psychology of attitudes. North Florida: Jovanovich college Publishers; 1993: 125-9.

Robb CA, Woodyard AS. Financial knowledge and best practice behavior. J Financ Couns Plan. 2011;22(1):60-70.

Rajna A, Ezat WS, AlJunid S, Moshiri H. Financial management attitude and practice among the medical practitioners in public and private medical service in Malaysia. Int J Bus Manag. 2011;6(8):105.

Scott RH. Credit card ownership among American high school seniors: 1997-2008. J Fam Econ Issues. 2010;31(2):151-60.

Haynes-Bordas R, Kiss DE, Yilmazer T. Effectiveness of financial education on financial management behavior and account usage: evidence from a ‘second chance’ program. J Fam Econ Issues. 2008;29(3):362.

Hira TK, Fanslow A, Vogelslang R. Determinants of satisfaction with preparations for financial emergencies. J Financ Couns Plan. 1992;3:172-7.

Mugenda OM, Hira TK, Fanslow AM. Assessing the causal relationship among communication, money management practices, satisfaction with financial status, and satisfaction with quality of life. Lifestyles. 1990;11(4):343-60.

Davis EP, Carr RA. Budgeting practices over the life cycle. AFCPE. 2018.

Hira TK. Financial attitudes, beliefs and behaviours: differences by age. J Consum Stud Home Econ. 1997;21(3):271-90.

Saurabh K, Nandan T. Role of financial knowledge, financial socialisation and financial risk attitude in financial satisfaction of Indian individuals. Int J Indian Cult Bus Manag. 2019;18(1):104-22.

Henager R, Cude BJ. Financial literacy and long-and short-term financial behavior in different age groups. J Financ Couns Plan. 2016;27(1):3-19.

Hilgert MA, Hogarth JM, Beverly SG. Household financial management: The connection between knowledge and behavior. Fed Res Bull. 2003;89:309.

Lusardi A, Mitchell OS. Baby boomer retirement security: the roles of planning, financial literacy, and housing wealth. J Monet Econ. 2007;54(1):205-24.

Delavande A, Rohwedder S, Willis RJ. Preparation for retirement, financial literacy and cognitive resources. Mich Retire Res Cent Res Pap. 2008:190.

Theodos B, Kalish E, McKernan SM, Ratcliffe C. Do financial knowledge, behavior, and well-being differ by gender? Urban Inst. 2014:124-7.

Fonseca R, Mullen KJ, Zamarro G, Zissimopoulos J. What explains the gender gap in financial literacy? The role of household decision making. J Consum Aff. 2012;46(1):90-106.

Lusardi A, Tufano P. Debt literacy, financial experiences, and overindebtedness. J Pension Econ Finance. 2015;14(4):332-68.

Herdjiono MVI, Hayon PP, Ilyas I, Septarini DF, Setyawati CH, Irianto O. Gender gap in financial knowledge, financial attitude and financial behavior. Adv Soc Sci Edu Humanit Res. 2018;117-9.

Eberhardt W, deBruin WB, Strough J. Age differences in financial decision making: The benefits of more experience and less negative emotions. J Behav Decis Mak. 2019;32(1):79-93.

Banks J, Bassoli E, Mammi I. Changing attitudes to risk at older ages: the role of health and other life events. J Econ Psychol. 2020;79:102-8.

Downloads

Published

2021-08-27

How to Cite

Tambolkar, A. S., Tambolkar, I. A., Pustake, M. V., Giri, P. A., & Raval, P. (2021). Financial knowledge, attitude and investment practices among Indian doctors. International Journal Of Community Medicine And Public Health, 8(9), 4289–4296. https://doi.org/10.18203/2394-6040.ijcmph20213198

Issue

Section

Original Research Articles