Financial Literacy and Personal Financial Management: Evidence from Private Sector Employees at Pokhara Metropolitan City

Abstract

Background: This study examines the impact of financial literacy on personal financial management among employees working in private sector organizations in Pokhara Metropolitan City. Financial literacy is considered an important factor in helping individuals manage their income, savings, and financial decisions effectively. The study mainly focuses on key components of financial literacy such as financial knowledge, financial awareness, financial attitude and behavior, and financial skills.

Methods: A quantitative research approach was used, and data were collected from 150 respondents through a structured questionnaire using a 5-point Likert scale. Convenience sampling technique was applied due to unknown population. The data were analyzed using descriptive statistics, correlation, and regression analysis to examine the relationship and impact of variables.

Results: The results show that financial awareness has a strong and significant positive impact on personal financial management. Financial knowledge also shows a positive and significant effect; however, its influence is smaller.

Conclusion: The study concludes that improving financial awareness and basic financial knowledge is important for better financial management. The findings suggest that policymakers and financial institutions should focus on financial education programs to enhance awareness and support individuals in managing their personal finances effectively.