Name: Preeti S Desai, Harshini C & Sai Prasad
Country: India

Year: 2025
Volume: Volume-12, Issue-2 (July-December)
Page Number: 133-143
DOI: https://doi.org/10.5281/zenodo.17367322

ABSTRACT
Financial choices may not be the same across urban and rural areas. This study explores how
salaried individuals make their investment decisions and manage their financial choices in
urban and rural areas within Tumakuru District, Karnataka, India. The primary purpose of
this research is to understand the different ways individuals adopt and the key social and
economic influences behind their decisions. To achieve the objectives data was collected
using structured questionnaire from the participants. 166 responses were collected as part of
this study and a quantitative research design was adopted. Descriptive statistics, T-tests, and
Chi-square tests were conducted to explore the relations between demographic factors,
financial knowledge, risk preferences, and investment behaviour of the respondents.
The findings indicate a substantial difference between urban and rural respondents regarding
their financial choices. These differences present as Urban participants usually have higher
and more or less regular income flows, better educational backgrounds, and improved access
to financial services. Hence they are more likely to diversify their portfolios and exhibit a
greater willingness to take financial risks. These features make them to prefer modern
financial instruments such as mutual funds and equities. On the other hand, rural individuals
are more likely to invest in familiar, low-risk options like gold, fixed deposits, and chit funds,
driven by limited financial awareness and a strong desire for security. Those who have taken
part in financial literacy programs are more likely to explore a wider range of investment
options, highlighting the important role of financial education. The study reinforces the value
of implementing region-specific financial literacy programs to enhance informed financial
decision-making, particularly in underserved rural areas.
This study adds value to the existing literature by offering localized insights into the urban–
rural divide in investment behavior. It highlights the need for targeted policy measures to
strengthen financial inclusion, improve access to financial services, and implement
customized financial literacy programs. Future research may broaden the scope by including
more diverse populations and additional socio-demographic variables.
Keywords: Financial choices, Salaried employees, Rural and urban, financial literacy,
Investment behaviour.