A STUDY OF GENDER DIFFERENCES IN FINANCIAL LITERACY AND INVESTMENT PREFERENCES AMONG SALARIED INDIVIDUALS IN MUZAFFARPUR DISTRICT

Abstract

Financial literacy and investment behaviour are increasingly recognised as determinants of household financial well-being, and gender has repeatedly emerged as a significant correlate of both. This study examines gender-based differences in financial literacy and investment preferences among salaried individuals employed in government, semi-government, and private organisations in Muzaffarpur district, Bihar. Using a structured questionnaire administered to 200 respondents (100 male and 100 female) selected through stratified random sampling, the study measures financial literacy across three dimensions basic financial knowledge, financial attitude, and financial behaviour and captures investment preferences across seven common instruments along with self-reported risk appetite. Descriptive statistics, an independent samples t-test, and a chi-square test of association were applied to test two hypotheses. The results indicate that male salaried employees recorded a significantly higher overall financial literacy score (M = 68.4, SD = 12.1) than their female counterparts (M = 59.7, SD = 13.5), t(198) = 4.82, p < 0.001, with the widest gap observed in financial behaviour rather than attitude. A significant association was also found between gender and preferred investment instrument, χ²(6, N = 200) = 42.71, p < 0.001: male respondents gravitated toward market-linked instruments such as mutual funds and equities, while female respondents preferred traditional, capital-protecting instruments such as bank deposits and gold. Both null hypotheses were rejected. The paper discusses these findings in light of socialisation, access, and confidence-related explanations offered in the literature and concludes with policy-relevant recommendations for targeted financial literacy interventions aimed at women in semi-urban districts such as Muzaffarpur.