Financial literacy and financial well-being: Empirical evidence from Romania

This paper examines the relationship between financial literacy and financial well-being using nationally representative data from Romania. Employing the ordinary least squares method, the analysis reveals a robust and positive association between the two variables. The findings indicate that individuals with higher levels of financial literacy tend to report greater financial well-being. The association is particularly strong for basic financial literacy, showing the importance of basic financial knowledge for people's well-being. This relationship remains significant across various sociodemographic groups. Overall, the results offer insights for developing targeted financial education programs and highlight the importance of enhancing basic financial skills in achieving meaningful improvements in individual well-being.