FINANCIAL LITERACY AND ITS IMPACT ON PERSONAL FINANCIAL PLANNING AMONG YOUNG ADULTS

Abstract: In today's dynamic and increasingly digital financial environment, financial literacy has emerged as a crucial life skill, particularly for young adults navigating the transition into financial independence. This study investigates the relationship between financial literacy and personal financial planning among individuals aged 18-34, a demographic faced with key life decisions such as education, employment, debt management, and long-term savings. Despite growing awareness, many young adults still demonstrate limited financial knowledge and irregular financial planning practices, which can result in poor financial outcomes. The study explores how foundational knowledge in areas such as budgeting, saving, and investing influences goal-setting, spending behavior, and overall financial well-being. It also examines the role of demographic factors and psychological attitudes in shaping financial behavior. Data was collected using a standardized self-report questionnaire distributed via online platforms. Findings are expected to provide insights into the gaps in financial literacy and suggest strategies for educational interventions aimed at empowering young adults to make informed financial decisions. The study holds implications for policymakers, educators, and financial institutions seeking to promote responsible financial behavior and long-term financial stability.

Keywords: Financial Literacy , Personal Financial, Planning Personal, Financial Planning, Young Adults Budgeting.