Financial Literacy and Its Impact on Personal Savings Behavior

Abstract

This research investigates the relationship between financial literacy and personal savings behavior, highlighting how knowledge of financial concepts influences individuals' saving practices. The study employs a quantitative approach, surveying diverse demographic groups to assess their levels of financial literacy and corresponding savings rates. Findings reveal that higher financial literacy significantly correlates with improved savings behavior, including increased savings rates and more strategic financial planning. Additionally, the research identifies key factors that enhance financial literacy, such as education and access to financial resources. The results suggest that promoting financial literacy can lead to better personal savings outcomes, contributing to enhanced financial security and stability among individuals.