ECONOMIC EMPOWERMENT OF WOMEN THROUGH FINANCIAL LITERACY

Financial literacy plays a significant role in effective decision-making leading to improved management of both household affairs and activities within the broader business environment. Sound knowledge of cash management, budgeting, savings, investment, costing, and financial planning contribute significantly to efficient resource utilization and an improved overall quality of life. Financial literacy equips individuals with the ability to understand income and expenditure patterns, evaluate financial risks, prioritize needs over wants and make informed decisions regarding the optimal use of limited financial resources. It also enables individuals to plan for future contingencies such as emergencies, education, healthcare and retirement etc. As a result, financially literate individuals are better prepared to face financial challenges in a positive and constructive manner, thereby reducing financial stress and avoiding psycho-physical disorders that often arise due to the imbalance between unlimited wants and limited earning capacity. This study focuses on examining the role of financial literacy in the economic empowerment of women. This study is based on secondary data collected from different online as well as offline sources as per the need of the study. The findings reveal that financial literacy significantly enhances women’s financial decision-making capabilities and confidence in managing personal and household finances. It also plays a vital role in promoting entrepreneurship, supporting business growth and increasing access to formal financial services such as banking, credit, insurance and digital financial platforms. Moreover, financial literacy strengthens women’s economic independence, improves household financial stability, encourages savings and investment behavior, enhances protection against financial exploitation and abuse etc.