Financial literacy and health behaviours among youth: evidence from India

Healthy behaviour reduces the risk of many serious physical and mental illnesses among individuals. Literature confirms a negative relationship between financial literacy and unhealthy behaviours like smoking, excessive alcohol, and gambling. This paper is an attempt to understand how financial literacy relates to health behaviour among Indian youth. Data was collected using an online questionnaire from 501 participants, and probit analysis was employed to test the hypotheses. The results revealed that higher financial literacy was associated with lower engagement in e-cigarette, marijuana, and drug use, as well as binge eating, and was also linked to greater physical activity and a higher likelihood of maintaining a normal Body Mass Index (BMI). However, no significant association was found between financial literacy and cigarette smoking or alcohol consumption. These findings highlight the potential role of financial literacy and other psychological and behavioural determinants in promoting healthier lifestyles among young adults in India.