THE EFFECT OF FINANCIAL LITERACY ON PERSONAL SAVINGS

Understanding the impact of financial literacy on personal saving behaviour. When it comes to saving and making wise financial decisions, people's money management is greatly influenced by their level of financial literacy. The hypothesis behind this study is that people with higher financial literacy are more likely to engage in proactive financial planning and exhibit stronger saving behaviours. It investigates the relationship between personal saving habits and financial knowledge. A mixed-methods research approach was used to fully comprehend this relationship. This included qualitative interviews to learn more about individual financial experiences, quantitative surveys to gauge financial literacy and saving habits, and secondary data analysis to place results in the context of larger socioeconomic trends. The findings show a strong correlation: people who know more about money save more frequently and are better able to deal with financial difficulties. These people are also more likely to set long-term financial goals and demonstrate more disciplined budgeting techniques. Crucially, the study reveals differences in financial literacy between various socioeconomic groups, with lower-income groups frequently having less access to resources for financial education. These groups' financial security and less favourable saving habits are a result of this disparity. The study highlights the critical need for inclusive and easily accessible financial education programs considering these findings. The inclusion of financial literacy in school curricula, community-based financial education, and focused programs for disadvantaged groups are some of the policy recommendations. Policymakers can contribute to the development of more resilient and financially stable communities by funding financial education.