Urban households in developing cities are required to manage rising living costs, digital payments, and increasingly diverse financial products. This paper examines how financial literacy influences saving habits among the general urban population of Lucknow. It argues that saving behavior is shaped not only by income but also by the ability to budget, understand interest, compare products, and prepare for financial risk. Recent Lucknow-based studies suggest that financial literacy remains moderate for many residents, while only a smaller proportion show strong understanding of compound interest, inflation, and diversification. At the same time, household spending patterns show that a major share of income is absorbed by essentials, leaving limited room for disciplined saving. The paper develops a conceptual framework that connects financial literacy with saving frequency, saving amount, formal financial participation, and emergency fund creation. A Lucknow-specific research plan is also proposed using survey data, literacy scoring, and regression analysis. The paper concludes that financial literacy can improve household resilience and support more stable saving behavior in urban Lucknow.