Examining the Role of Financial Awareness, Attitude, and Knowledge in Personal Financial Planning: A Study in the Kathmandu Valley

Purpose. This study explores the relationship between financial literacy, including awareness, attitude, knowledge, and planning, among Nepalese individuals who reside in the Kathmandu Valley. Design/methodology/approach. The study employed a descriptive and causal research design based on the primary data collected from 386 respondents who were actively engaged in financial transactions at the Nepalese Stock Market. It used a purposive selection approach to select participants, specifically those involved in financial transactions at stock broker centers located in Kathmandu Valley. Findings. The study’s outcome indicates a modest positive relationship between financial awareness and individual financial planning (β = 0.143; p = 0.000), whereas financial attitude demonstrates a stronger positive association (β = 0.323; p = 0.000). Financial knowledge is the most influential component in individual financial planning (β = 0.501; p = 0.000). Research implications. The results indicate that by implementing focused educational programs, individuals can enhance their financial literacy, enable them to make well- informed financial decisions, enhance their financial planning skills, and ultimately progress their long-term financial security. Originality/value. This study underscores financial literacy's significance for individual and social well-being.