Impact of Financial Literacy and Financial Planning on Individual Economic Stability

Abstract

Financial literacy, the ability and efficiency to understand and manage personal finances, empowers individuals to make informed decisions that can significantly impact their financial security and overall quality of life. This paper aims to investigate the role of financial literacy and financial planning in enhancing economic stability among individuals. It analyses the financial knowledge, level of awareness and financial planning practices among individuals and how these factors contribute towards economic stability. The study conducted using primary data collected through questionnaire. The study highlights that financial literacy leads to economic stability only when there is proper financial planning among individuals. The paper concludes by understanding financial concepts, making informed decisions, and adopting responsible financial habits, individuals can build a strong financial foundation.