The financial literacy of individuals has become an important factor to improve their financial wellbeing, as households are faced with various choices around which involves financial decisions such as saving, borrowing, investment, insurance and retirement planning and with the increasing use of digital financial services. Women teachers are a particularly relevant professional group as they are economically active, educationally qualified and have the potential to shape financial awareness in the household, school and community. This paper is an attempt at understanding financial literacy of women teachers in Sikkim and studying the differences in financial literacy across different demographic and institutional groups. The primary data was collected from 364 female teachers from a population of 6171 female teachers. The instrument was designed with the Knowledge, Attitude, Skills and Habits (KASH) approach. The following statistics were used: descriptive statistics, reliability analysis, normality testing, one-way ANOVA and independent-samples comparison. The results indicate that there are substantial differences in overall financial literacy between age, occupation, locality and higher-education versus school status. The 31–40 age group recorded the highest mean financial-literacy score (80.67), compared with 67.26 for 21–30, 75.36 for 41–50 and 66.23 for respondents above 50. The urban respondents had significantly higher literacy than the rural and semi-urban respondents, and higher-education teachers recorded higher literacy than school teachers. Similarly, no significant differences were found between age and occupation in the school-teacher subgroup. The results indicate that it is important to tailor financial literacy education to the stage of life, work environment and location of the individual, instead of a single financial literacy awareness model