Financial literacy is extremely significant in today's complex and interconnected global environment. It encompasses the knowledge, skills, and understanding of financial concepts that empower individuals to make informed and responsible decisions about their personal finances. The present study focuses on determining the financial literacy among students at higher educational institutes, the challenges they encounter in managing their personal finances, and explores the measures that can be taken to improve their financial literacy and overall financial well-being. Using both main and secondary sources, a survey-based research design gathered data from 101 college students. Participants were divided into low, medium, and high literacy groups based on self-evaluation and knowledge of fundamental financial concepts. The results indicate that 20.79% of students exhibit low literacy, 28.71% exhibit high literacy, and 50.5% exhibit moderate financial literacy. While only a small fraction turns to professional financial counsellors, most students (44.6%) depend on self-directed research for financial knowledge. Lack of financial knowledge (25.74%), peer pressure causing overspending (23.76%), and high cost of living (20.79%) were among the main issues discovered. Interestingly, 68.32% of pupils advocate making financial literacy instruction required in every field of study. The research supports the conclusion that better personal financial management is strongly correlated with higher financial literacy and that financial education initiatives successfully raise pupils' financial awareness. But financial literacy levels were not much different between various academic fields. The study advises including financial literacy in academic programs, holding frequent seminars, and using digital tools to help pupils improve their financial capacity. For governments trying to enhance financial education programs for college students as well as for educational institutions, these results offer insightful information.