EFFECT OF FINANCIAL LITERACY ON PERSONAL FINANCIAL PLANNING OF WOMEN IN KATHMANDU VALLEY

Abstract

This study investigates the effect of financial literacy on personal financial planning among women in the Kathmandu Valley. As financial literacy plays a crucial role in shaping effective financial behaviors and decision-making, this research focuses on understanding how various dimensions of financial literacy influence women’s financial planning practices. Key findings reveal that higher financial literacy among women is positively associated with more effective personal financial planning. Women with greater financial knowledge and better financial behavior exhibit improved capabilities in managing their finances, setting and achieving financial goals, and making informed investment decisions. Financial literacy facilitates enhanced retirement preparedness and proactive financial behaviors, aligning with broader research that underscores the importance of financial education. The study highlights significant variations in financial planning practices based on the level of financial literacy, with well-informed women demonstrating more strategic and disciplined approaches to personal finance management. The research also identifies barriers to financial literacy among women in Kathmandu, including limited access to financial education and societal constraints. These barriers affect the overall effectiveness of personal financial planning. The study advocates for targeted financial education programs and policies designed to address these gaps and empower women with the knowledge needed to improve their financial well-being. The study contributes valuable insights into the relationship between financial literacy and personal financial planning among women in Kathmandu Valley. It emphasizes the need for comprehensive financial education initiatives to enhance women’s financial literacy and, consequently, their financial planning outcomes. Future research should further explore the specific challenges faced by women and evaluate the impact of educational interventions on improving financial planning practices.