Financial Wellbeing is the Goal of Financial Literacy

Abstract

Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. Increasingly, individuals are responsible for their own financial literacy and encountered with complex integrated financial instruments. The purpose of this study is to highlight the important of financial literacy for financial wellbeing of working women and present the impact of financial literacy and financial attitude on the financial wellbeing. This is a survey based study with a sample size of 300 working women. Working women were carefully selected from non-financial sector. The result of this study showed that financial literacy is an essential element for the wellbeing. Analysis indicate that financial literacy is significantly and positively related to financial wellbeing. Financial literacy leads toward financial wellbeing. Higher the level of financial literacy, greater will be the financial wellbeing. Similarity, financial attitude has positive significant relationship with financial wellbeing. Financial wellbeing is found to be effected by demographic variables i.e. age, marital status, education, profession, income level, saving and investment tendency of the respondents. Finally, results revealed that the presence of financial literacy and positive financial attitude is necessary for the financial wellbeing of working women.

Keywords: Financial literacy, financial attitude, financial wellbeing