FINANCIAL LITERACY AND FINANCIAL WELLBEING AMONG NEPALESE INVESTORS

Abstract

The objective of this study is to investigate the relationship between financial literacy and financial well-being among Nepalese investors, specifically within the Kathmandu Valley. Using a descriptive research design, data were collected from a population of investors associated with NEPSE trading, resulting in a sample of 389 respondents selected through a convenient sampling method. The study employed a five-point Likert scale questionnaire addressing constructs such as financial awareness, financial experience, financial well-being, financial skill, and financial self-efficacy. The findings reveal that all examined correlations are significant at the 0.01 level, indicating strong relationships between the variables. Financial awareness is notably associated with an increase in financial well-being. Although financial experience shows a positive effect, it is not statistically significant. Financial skills positively influence financial well-being, suggesting that higher financial skills contribute to better financial outcomes. Financial self-efficacy demonstrates a strong positive impact, highlighting that greater financial self-efficacy significantly enhances financial well-being. Enhancing financial literacy, particularly in financial awareness, skills, and self-efficacy, significantly improves the financial well-being of Nepalese investors, suggesting the need for targeted financial education programs and further research across diverse demographics and regions.