This study attempts to examine the relationship between Financial Literacy and Financial Well-being among households. Increasing complexity of financial products and forever changing global economy has complexity when it comes to making the financial decision and financial planning and it has left people with a challenge while participating in economic and financial activities. For this reason, the significance of financial knowledge and financial literacy has increased. Keeping in mind, the growing importance of financial literacy as an important factor in financial well-being, this study attempts to evaluate the relationship between financial literacy and financial well-being among household. For the purpose of study, a questionnaire was designed and has been distributed. Household families were selected as respondents using random sampling method. The data analysis was done using correlation test, independent two sample test based on T distribution and regression. The results have shown that education of the decision maker in the family and his/her age has direct relation with financial literacy and ultimately the level of financial literacy affected positively on financial well-being. It was also found that married men and women are more financially literate and higher levels of financial literacy leads to higher level of financial well-being.

KEYWORDS: Financial Literacy, Financial Well-being, Household Financial Management.