ABSTRACT
Financial literacy is a critical skill for achieving economic stability, particularly within rural households where access to formal financial services is often limited. This article explores the relationship between financial knowledge and the budgeting behaviors of rural populations. Drawing on studies from India and Kazakhstan, the research indicates that higher levels of financial literacy lead to systematic budgeting, increased savings rates, and more prudent debt management. Conversely, financial illiteracy is linked to ad-hoc money management and a higher risk of falling into debt traps.