2023, Vol. 6, Issue 1

Everybody concern with managing households’ finance and the well-being of the public must be financially literate. The influence of indicators of financial literacy such as financial knowledge, attitude, and capability on individuals' financial behaviour is examined in this study. The data were collected in a field study from 572 respondents from Haryana, India using a non-probability purposive sampling approach to characterize respondents’ financial behaviour based on their demographics. The study infers from the data that all the independent variables financial knowledge, attitude, and capability significantly positive influenced the individuals' financial behaviour. Interestingly, the data also indicated that all the indicators of financial literacy are plays a significant role in influencing and enhancing financial behaviour. Second, a person's attention to having a formal bank account, and a budget, participating in the financial market, and engaging in financial behaviours in circumstances like risky financial markets can all be improved by financial literacy. This relationship suggests that financial literacy positively impacts participation in financial markets through limited attention channels that facilitate access to specific financial information. The study offers insightful policy recommendations to improve financial literacy, such as offering financial education to increase individuals' financial literacy, which further aids in improving households’ financial decision-making. The primary conclusion of this study will assist academics and practitioners in expanding the body of knowledge on the subject and offer a summary of prospective areas for future research.