www.theinternationaljournal.org> RJCBS : Volume: 09, Number: 04, February 2020 Page 1 A Study On The Awareness Of Basic And Advanced Financial Terms And Financial Discipline Amongst The Populace In The City Of Ahmedabad Dr. Riddhi Dave (Faculty) Som Lalit Institute of Business Management St. Xavier Campus Corner, University Road Navrangpura, Ahmedabad -380009 Dr. Roopa Rao (Faculty) Som Lalit Institute of Business Management St. Xavier Campus Corner, University Road Navrangpura, Ahmedabad -380009 Dr. Rajeshwari Jain (Visiting Faculty) Som Lalit Institute of Business Management St. Xavier Campus Corner, University Road Navrangpura, Ahmedabad -380009 Abstract: Financial literacy is the ability to use skills and knowledge to take effective and informed money-management decisions. It is erroneously believed that one who is ‘literate’ or ‘rich’ is also ‘financially literate’. But, in many instances it is found that people expert in their own domain end up making wrong financial decisions due to lack of financial literacy and hence creating financial awareness and educating classes and masses on the same remains important. The authors in this paper have tried to study and analyze the prevalence and depth of financial literacy among the targeted audience. (Key words: Financial Awareness, Financial Literacy, Basic Finance terms, Modern Finance Terms) Introduction Matters Related to Money Matters a Lot!!! It requires ability and skill to take wise financial decisions and lack of financial understanding results in unproductive financial decisions leading to fatal outcomes. Financial literacy is the ability to use skills and knowledge to take effective and informed money-management decisions.The OECD has a working definition of financial literacy. It considers it “a combination of awareness, knowledge, skill, attitude and behavior necessary to make sound financial decisions and ultimately achieve individual financial wellbeing”. Through various researches, it is found that knowledge of basic principles of finance, like risk, return, risk-return trade off, liquidity, inflation, simple interest, compound interest, savings, investments, etc enables one to make sound financial decisions and avoid financial pitfalls. Conversely, people with no or low degree of financial literacy struggle to understand money matters and end up hampering their financial wellbeing.People who cannot comprehend basic financial concepts, such as interest compounding and financial risk diversification, often end up paying higher transaction fees, pile up unmanageable debts and end up paying higher interest on loans. India has always witnessed a strong presence of informal finance sector, which is notorious for taking undue advantage of low financial literacy mostly by charging exorbitant interest rates especially from low income households. The people with low financial literacy have also been periodically lulled into dubious schemes by nefarious characters. According to a global survey by Standard & Poor’s Financial Services LLC (S&P), less than 25% of adults are financially literate in South Asian countries. For an average Indian, financial literacy is yet to become a priority. India is home to 17.5%