2025, Vol. 8, Issue 2

author(s)
G Prasanna Kumar and Rajni Saluja

abstract
The middle class seems to have trouble finding a balance between spending, saving, investing, and debt, this article looks at how financial literacy affects asset management for middle class families. In a world where financial market has become highly complex, it has become important to know how informed financial decisions can help in successful management of wealth. The study explores the connection between the levels of financial literacy such as finance knowledge of budgeting, saving, investments, risk diversification, and retirement planning and how efficiently middle-class families can manage wealth. Based on a structured questionnaire and on a sample of middle-income households, the study examines behavioral patterns, financial objectives and uses of the financial instruments. Findings show that having higher financial literacy is predictably positive with good welfare management practices by saving frequently, having appropriate investments, reduced dependence on high-interest debts, and a long-term wallet planning. The results indicate that although a significant number of middle-class families have the rudimentary knowledge regarding money, they still lack the ability to implement the same practically. To achieve the expectations of the middle-class in regard to financial abilities, it is necessary to implement laws and specific programs for financial education. With reasonable financial education of the households, economic sustainability and financial stability will increase, as well as the sustainability of wealth building in the long run. Policymakers and the many financial literacy initiatives that aim to include all citizens in economic growth may benefit from this study's findings.