Relationship between Financial Literacy and Personal Financial Wellbeing:An Empirical Study

The inability of people to properly take a well thought out financial decision is the main reason that most of the time they are not able to achieve financial well being. The purpose of the present paper is to study the relationship and measure the impact of financial literacy on financial wellbeing of individual respondents. The questionnaire has been used for this purpose wherein various variables were identified. The study results indicate that the level of financial literacy has a high positive correlation with personal financial wellbeing. It also shows that in line with previous studies, financial literacy has a significant impact on financial wellbeing, consequent upon this, financial literacy is considered an important predictor of financial wellbeing. This study is also expected to add value to the domain of importance of financial literacy in current financial world and to ensure better financial planning in an emerging economy where the present study is a maiden attempt by the researchers.