Understanding Financial Literacy, Financial Anxiety, and Financial Decision-Making in Urban India: Evidence from Metropolitan Residents (1st LAST)

This study examines the relationship between financial literacy and financial anxiety among residents of major Indian metropolitan cities. Rapid urbanization, increasing access to financial products, and changing household financial responsibilities have heightened the importance of financial literacy. Using a quantitative research design, the study evaluates how knowledge of budgeting, savings, investments, credit management, and risk diversification influences individuals’ financial anxiety. The findings indicate a significant negative relationship between financial literacy and financial anxiety, suggesting that financially literate individuals experience lower stress and demonstrate more confident financial decision-making. The study contributes to the growing literature on personal finance and offers implications for policymakers, educators, and financial institutions.