Rising living costs have become a major socioeconomic challenge, placing increasing pressure on household

financial stability and the financial well-being of working professionals. Although previous studies have

extensively examined inflation, household finance, and financial well-being using quantitative approaches,

limited attention has been paid to how individuals experience and manage rising living expenses in their

everyday lives, particularly in the regional contexts of developing economies such as India. This study explored

how rising living costs influence financial well-being and household financial decision-making among working

The study employed an interpretivist research philosophy combined with an exploratory qualitative approach.

Semi-structured interviews were carried out with 25 working professionals from government and private-sector

organizations in Uttarakhand. Participants were purposefully chosen to ensure a variety of perspectives on

budgeting, cutting back on discretionary expenses, building emergency savings, and finding additional sources

of income. Viewing these findings through the lens of the Family Resource Management Theory (FRMT), it

becomes clear that households continuously adjust their financial resource management in response to changing

The study contributes to the household finance literature by extending the application of the Family Resource

Management Theory to the context of rising living costs and by providing qualitative evidence from Uttarakhand,

an underexplored region in India. The findings offer practical insights for policymakers, employers, financial

institutions, and financial educators seeking to strengthen household financial resilience and promote sustainable

healthcare, transportation, education, and utilities (Ruel et al., 2010). In many nations, economic expansion has

created new jobs, yet wage growth has often lagged behind rising living costs. Financial well-being is therefore

a growing concern for researchers, governments, employers, and financial institutions, as many salaried people

still face financial strain despite steady jobs. Because it reflects a person's ability to meet current financial

obligations while maintaining confidence in future financial stability, financial well-being has become a key

concept in household finance, behavioral economics, and consumer research. According to recent research,

financial well-being encompasses subjective assessments of financial stability, financial confidence, and the

capacity to make decisions that support an acceptable quality of life, as well as objective metrics such as wealth

or income. Higher financial well-being is typically associated with better psychological health, more effective

resources among conflicting demands, such as daily consumption, housing, healthcare, education, savings, debt

reduce savings, seek additional income, and reevaluate long-term financial goals during periods of persistent

behaviors show that making financial decisions at home is not just an economic activity but also a behavioral

and social process shaped by personal beliefs, work circumstances, family obligations, and shifting economic

financial security and adjust their financial decisions amid changing market conditions is increasingly important

In Uttarakhand, where geographic diversity, urbanization, tourism-based economic activity, and a range of

employment prospects create distinct household financial conditions, the issue is especially pertinent

transportation, digital services, insurance, and other essential household needs are rising in major cities such as

regions often face additional costs related to transportation, accessibility, and the availability of essential services

Nevertheless, most of these investigations have employed quantitative research methodologies, including

quantitative methods are effective at identifying correlations between variables, they often offer little insight into

how people cope with financial difficulties, assess financial stability, manage household finances, and adjust

The regional context of the existing literature is another drawback. Much of the available research draws on

nationally representative datasets, developed economies, or urban areas. Regional contexts such as Uttarakhand,

where employment structures, household duties, service accessibility, and cost-of-living patterns differ

The Family Resource Management Theory (FRMT) serves as the theoretical basis for this study and addresses

these gaps (Deacon & Firebaugh, 1988; Goldsmith, 2012; Parrotta & Johnson, 1998). The theory explains how

Therefore, this study investigates how rising living expenses affect household financial decision-making and

financial well-being among working professionals in Uttarakhand's public and private sectors (Creswell & Poth,

2018; Saunders et al., 2019; Merriam & Tisdell, 2016). The study aims to produce rich insights into participants'

lived experiences, financial perceptions, decision-making processes, and adaptive strategies through semi-

structured interviews and an exploratory qualitative research design. In contrast to earlier survey-based studies,

this study focuses on how people interpret their financial experiences and the contextual elements that influence

The study contributes to the existing body of literature in four significant ways. First, it offers a comprehensive

understanding of how rising living expenses, financial well-being, household financial decision-making,

financial stress, and coping mechanisms are related within a unified qualitative framework (Brüggen et al., 2017;

Lastly, the results have practical implications for financial institutions, employers, financial educators, and

legislators seeking to improve household financial resilience through evidence-based policy interventions,

workplace financial wellness programs, and financial literacy programs (OECD, 2020; World Bank, 2022;

This study's main objective is to investigate how rising living expenses affect working professionals' financial

well-being and household financial decision-making in Uttarakhand, India. In particular, the research aims to

RQ1. In light of growing living expenses, how do working professionals in Uttarakhand view their financial

By examining the real-life experiences of working professionals managing household finances amid an

increasingly difficult economic climate, this study advances both academic understanding and practical policy

quantitative methods that primarily measure financial outcomes using standardized survey instruments, despite

growing scholarly attention to financial well-being. As a result, less attention has been paid to how people

negotiate household financial priorities, assess their financial circumstances, and adjust their financial behavior

coping mechanisms faced by working professionals can inform the creation of financial literacy programs,

workplace financial wellness initiatives, employee assistance programs, and evidence-based public policies that

improve household financial resilience. Organizations can create employee perks and support systems that

improve financial stability, productivity, and overall well-being by taking into account the financial realities of

development, and organizational practices to enhance financial well-being amid ongoing economic uncertainty,

Uttarakhand, where household obligations, work patterns, and geographic conditions may shape financial

decisions differently than in urban settings (Nayyar, 2019; Tiwari & Joshi, 2022). Therefore, a more thorough

understanding of how working professionals adjust to rising living costs and maintain financial stability amid

shifting economic conditions can be gained by analyzing household financial behavior through participants' lived

Inflation Impact on Household Financial Behaviour (2020–2025): Recent global and national evidence

highlights that inflation has significantly altered household financial behavior, particularly by reducing real

income and purchasing power. The ongoing cost-of-living crisis is characterized by rising prices for essentials

such as food, fuel, and housing outpacing wage growth, thereby constraining consumption and lowering living

In the Indian context, recent evidence indicates a sharp rise in household expenditure, with more than 58% of

households reporting difficulty managing expenses due to inflationary pressures. Rising food inflation and

equipped to create structured budgets, keep emergency funds on hand, handle debt sensibly, and make

investments for long-term financial security. On the other hand, households facing financial instability frequently

make short-term financial choices characterized by lower savings, delayed investments, higher borrowing, and

imply that financial well-being serves as a resource that influences future financial behavior and household

This relationship has been exacerbated by the recent rise in living costs, which has further strained household

finances (OECD, 2022; IMF, 2023; World Bank, 2022). Rising costs for housing, healthcare, education,

transportation, and necessities have reduced disposable income, forcing many households to reevaluate their

Strong family involvement and group responsibility are hallmarks of household financial decision-making in the

Indian context (Sundaram & Vanneman, 2008; Reserve Bank of India, 2023). Financial decisions often extend

beyond personal preferences to encompass long-term family security, healthcare, housing, elder care, marriage

costs, and children's education. These choices have become more difficult amid rising living costs, especially

behavioral aspects of household finance that are often overlooked in survey-based studies. Financial Stress and

Household Financial Well-being (2020–2025). Recent literature identifies financial stress as a critical outcome

of economic uncertainty, inflation, and income instability. Financial stress arises when households struggle to

meet financial obligations, often leading to anxiety, reduced well-being, and poor financial decision-making.

Post-COVID studies indicate that rising living costs, job insecurity, and declining savings have intensified

financial stress globally. In India, middle-class households are increasingly facing debt burdens, declining

Emerging research also shows that financial stress influences behavior, including reduced savings, increased

borrowing, and stricter budgeting. Additionally, financial instability is closely linked to psychological outcomes,

including anxiety and reduced financial confidence. Recent reports further highlight that middle-class

continually engage with their internal and external contexts as they make choices about how to manage their

time, money, resources, and people. FRMT emphasizes that household resource management is an ongoing

process of planning, implementing, evaluating, and adapting to changing environmental conditions, rather than

The theoretical framework supporting this investigation is shown in Figure 1. The framework illustrates how an

external economic factor, rising living expenses (OECD, 2022; World Bank, 2022), affects household financial

behavior. Through budgeting, spending planning, saving, borrowing, and other financial decisions, households

allocate and manage their financial resources in line with Family Resource Management Theory (Deacon &

Firebaugh, 1988; Goldsmith, 2012). These actions ultimately determine a household's ability to maintain

Over the past decade, empirical research on household finance has grown significantly amid shifting

employment conditions, inflationary pressures, and rising economic instability (Lusardi & Mitchell, 2014;

OECD, 2022; World Bank, 2022). Research repeatedly shows that rising living costs undermine financial well-

being by eroding purchasing power, increasing household spending, and limiting families' ability to save and