Recent years have seen a rise in the number of studies conducted on financial literacy by economics educators and researchers. Personal, family, and national financial literacy are all obvious areas where improvement could be made. To a large extent, the financial decisions made by decision-makers affect the economic well-being of all social classes. Particularly in the context of emerging nations, the correlation between better financial decision-making and fostering economic progress is a topic of substantial interest. Given the importance and current relevance of financial literacy, this study aims to investigate the current level of financial literacy among people living in slum regions and how it may affect their financial wellbeing. The research sampled 300 people from slums in the areas of Jayanagara, Dayananda Lalbagh, Siddapura, Yelahanka, and Kanteeravanagara using a convenience sampling technique. The major instrument for gauging participants' levels of financial literacy and financial well-being was an interview schedule with 36 items specifically developed to do so. Cronbach's alpha and the Composite Reliability tests were used to determine the constructions' internal consistency. As a prelude to using Structural Equation Modeling (SEM) methods, the current research uses Confirmatory Factor Analysis (CFA) to quantify the well-established concepts of financial literacy and financial well-being. Financial literacy among slum dwellers was found to have a significant impact on their economic well-being by 45 percent, with a statistically significant association established at the 5% level of significance.