Abstract:

Financial literacy is very important for economic development and financial accessibility, especially in rural areas where access to financial knowledge and services is still limited. This study looks at the level of financial literacy among rural households in the district of Mandi, Himachal Pradesh and how it affects their financial decision-making. The study focuses on important areas like awareness of banking services, saving habits, investment choices, and the use of insurance and digital financial tools.

The study relies on primary and secondary data gathered through a structured questionnaire and taken from reports and previous studies of rural respondents. It examines how demographic factors such as age, education, and income level impact financial awareness. The findings indicate that while basic banking knowledge exists among rural people, understanding of more complex financial products and digital services is lacking. It is also noted that individuals with greater financial literacy are more likely to make informed and effective financial decisions, which include better saving and investment practices.

Additionally, the study points out the gap between financial inclusion initiatives and actual financial understanding in rural communities. It stresses the need for targeted financial education programs to improve awareness and encourage responsible financial behaviour among these populations. The study concludes that improving financial literacy can significantly enhance the financial well-being and economic stability of rural households in Himachal Pradesh.

Keywords:

Financial Literacy, Rural Households, Financial Decision-Making, Financial awareness.

Aim/Objectives

Methods