Behaviour of Individuals in Everyday Financial Decisions: A study of Demographic Variables

Behavioral finance considers the impact of individual's attitude on their financial decisions. The present paper empirically assesses the factors that influences the individual behavior regarding everyday financial decisions and further examine the impact of demographic variables on these factors. The study is mainly primary data based with a sample of 250 respondents from Hisar district of Haryana state and applied statistical tools of factor analysis and one way ANOVA to achieve the objective of the study. The factor analysis discloses nine factors which are named as compulsive shopper, financial awareness, financial botheration, financial advice, concern for future, saving schemes, composed decision believes in savings and income. Further, gender, age, marital status and occupation are found to have significant impact on the derived factors.