Exploring the Components of Financial Literacy among Organised Sector Working Women in Visakhapatnam: An Empirical Evidence using EFA

Abstract

The main aim of this study is to analyse the dimensions of financial literacy levels among working women using EFA (Exploratory Factor Analysis) to make sound financial decisions. The Periodic Labour Force Survey 2024 stated that the female workforce participation rate in 2024 is 51%. (PLFS' 2025). India has seen a transformation in women's workforce participation from 2017-18 to 2023-24 (Government of India, PIB' 2024), but financial knowledge gaps persist (Roy & Patro, 2022). The study employed exploratory research and analyzed the responses by distributing a questionnaire to 110 working women across organized sectors, including IT, banking, insurance, manufacturing, and others. The author divided the questionnaire into two parts; the first is about the demographic information, and the second is about assessing the financial knowledge questions, their attitude, and financial behavior. The study used a convenience sampling method for data collection. To identify nine themes by applying EFA with all the methods and procedures by using SPSS software, and to check the reliability by Cronbach's alpha, and for the suitability of the data used, KMO sampling adequacy for factor analysis. This study's outcomes revealed nine themes related to financial literacy levels of working women who are working in different organised sectors like IT, Banking sector, Insurance, Manufacturing, and others on financial awareness, time value of money, investment knowledge, mindset on finance, financial management, risk-tolerance, financial discipline, household budget, and financial goal setting. The study comprehensively explained the procedures employed to conduct Exploratory Factor Analysis (EFA) for the Financial Literacy construct. This study explored the awareness levels of financial products of working women in the organized sector in Visakhapatnam for the first time in a sector-specific manner through empirical research.