Subject and purpose of work: This study seeks to enhance financial well-being by offering valuable insights into the financial literacy of both welfare recipients and non-recipients in Gaya, Bihar. Materials and methods: The study was based on primary data and data was collected by structured interviews from 128 households, including 65 welfare recipients and 63 non-recipients to assess their level of financial literacy. Pearson's χ2 test and logistic regressions were used for data analysis. Results: The results state that years of schooling significantly affect the different dimensions of financial literacy whereas age, monthly income and homeownership have also shown marginal significance. Furthermore, the financial literacy of welfare recipients is significantly lower compared to non-recipients. Conclusions: The study suggests the need for financial literacy initiatives for welfare recipients. Such measures can contribute to the economic upliftment and better socio-economic conditions in Gaya.