Social learning theory and financial literacy: A study of Indian higher education

Financial literacy plays a critical role in making informed financial decisions and ensuring long-term financial well-being. However, the behavioural processes through which it develops, particularly social learning mechanisms among university students in emerging economies, remain unclear. This study examines the determinants of financial literacy among university students in northern India using Social Learning Theory to distinguish between observational learning, reinforcement, and social normative influences. Drawing on survey data from 363 students enrolled in public universities across Uttarakhand, Uttar Pradesh, Haryana, and Punjab, this study assessed financial knowledge, behaviour, attitudes, and numeracy skills. The results show that nearly two-thirds of students exhibit low levels of financial literacy, with systematic differences across gender, fields of study, work experience, and participation in money management courses. Female students displayed stronger financial behaviours and attitudes, and business and management students demonstrated greater financial knowledge. Parental guidance and peer interactions are more strongly associated with financial behaviours and attitudes than with knowledge, highlighting social reinforcement's importance. By empirically differentiating social learning mechanisms across financial literacy dimensions, this study highlights the persistence of the knowledge–behaviour gap and provides context-sensitive insights for designing experiential and socially embedded financial education initiatives in higher education.