Financial Literacy and Financial Well-being among Indian Adults: Evidence from a Cross-sectional Survey

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@article{1723275,
      author = {Manvitha N Aithal, Deepak Shyam},
      title = {Financial Literacy and Financial Well-being among Indian Adults: Evidence from a Cross-sectional Survey},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {10},
      number = {3},
      pages = {2257-2264},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1723275.pdf},
      abstract = {Financial literacy is increasingly viewed as a multidimensional capability involving financial knowledge, attitudes, and behaviour. This study examines the association between financial literacy and financial well-being among Indian adults using primary survey data. A cross-sectional quantitative survey was conducted through a structured online questionnaire, and 214 valid responses were included in the analysis. Financial literacy was operationalised as an exploratory composite index incorporating financial knowledge, financial attitude, and financial behaviour, while financial well-being was measured using five survey items scored on a five-point response scale. Descriptive statistics were used to assess the study constructs, and Spearman's rank-order correlation was used to examine their association. The respondents recorded a mean financial literacy score of 3.16 (SD = 0.49) and a mean financial well-being score of 3.27 (SD = 0.69). Among the financial literacy dimensions, financial behaviour had the highest mean (M = 3.96, SD = 0.64), while financial attitude had the lowest (M = 2.64, SD = 0.81). Financial literacy was positively and significantly associated with financial well-being (rho = 0.279, p < .001, N = 214). The association was modest, indicating that financial literacy is related to, but does not by itself determine, financial well-being. The findings support the importance of financial capability while also pointing to the role of broader socioeconomic and behavioural factors in shaping financial well-being.},
      keywords = {financial literacy; financial well-being; financial knowledge; financial attitude; financial behaviour; Indian adults; personal finance},
      month = {September},
  }