Journal of African Development

In the context of accomplishing the Sustainable Development Goals (SDGs) and enhancing household-level socioeconomic outcomes in a financial environment that is changing quickly, financial literacy has grown in significance. Today's households and individuals must make difficult financial decisions about debt, savings, investments, and income management, which makes financial literacy a crucial factor in determining general well-being. This study looks at how financial literacy affects households' social and economic well-being in the Delhi NCR area of India.The research design used in the study is cross-sectional and descriptive. In addition to measures of economic well-being (income stability, savings, debt management, and financial security) and social well-being (education, health, and living standards), a structured questionnaire measuring financial knowledge, financial skills, and financial behavior was used to gather primary data from 489 household heads. To verify the measurement model and assess the suggested correlations, the data were examined using frequency distribution, exploratory factor analysis (EFA), and structural equation modeling (SEM). The findings show that financial literacy significantly and favorably affects social and economic well-being. Higher financial literacy households make better financial decisions, allocate resources more wisely, handle risk better, and are better equipped to meet long-term socioeconomic demands. The results demonstrate how important financial literacy is for improving household resilience and quality of life.For governments, academic institutions, and development organizations, the study offers important policy implications. Financial inclusion, prudent financial conduct, and equitable and sustainable socioeconomic development can all be strengthened by focused financial literacy programs