Role of Financial Literacy on Financial Well-being of Millennial Generation: An Empirical Study

Abstract

In order to improve the financial well-being of India's millennial population, financial literacy is essential. This group has particular financial difficulties, such as growing living expenses, debt from education loans, and expectations to become financially independent early in life. Millennials that possess financial literacy are better able to manage their money, choose wisely when making investments, and create long-term plans. Millennials may steer clear of typical financial traps by having a basic understanding of concepts like debt management, investing, saving, and budgeting. They can better negotiate the complexity of financial products and services with greater financial literacy, which improves financial security and stability. Furthermore, financial literacy encourages responsible financial behaviour, which lowers the risk of taking on excessive debt and raises the potential for wealth building. In the end, developing millennials' financial literacy is crucial to creating a generation that is prosperous and resilient financially. A sample of 219 is collected from Millennial generation to know about their financial literacy. The factors that identify the role of financial literacy on Financial Well-being of Millennial generation are Improved Budgeting and Money Management, Effective Debt Management, Long-Term Financial Planning, and Informed Investment Choices.