The study aimed to assess the factors influencing financial literacy and expenditure management, with the mediating role of budgeting habits. The study involves a sample of 519 individuals in Chennai, employing purposive sampling technique to select samples. A causal research design is implemented to investigate the relationships among financial experience, personal motivation, digital literacy, financial literacy, budgeting habits, and managing expenditures. Financial literacy, in turn, significantly influences the management of expenditures. Additionally, budgeting habits exhibit a partial significant effect between financial literacy and the effective management of expenditures. The study confirms that there is a distinct influence of gender, age, education, income, and occupation on various aspects of financial literacy, budgeting habits and managing expenditure.