It is a fact of life that education contributes to financial literacy. But such literacy can take different forms. Research by Sumit Agarwal, senior financial economist in the research department at the Federal Reserve Bank of Chicago, and a visiting professor at the Hyderabad-based Indian School of Business (ISB), shows that while Indians know more about saving, Americans know more about investing. Overall, Agarwal finds that Internet-savvy Indians are 20% more financially literate than Americans. This puts them at the same level as Europeans.

The research paper -- Financial Counseling, Financial Literacy, and Household Decision Making -- was presented during an economics conference at Wharton last year. The survey of 2,500 individuals or families was conducted by financial website InvestmentYogi.com. Financial literacy was assessed by asking respondents to answer simple questions related to interest rates, savings and the growth of money.

To read the full, original article click on this link: Indians Save, Americans Invest: Why Financial Literacy Should Accompany Inclusion - India Knowledge@Wharton