Household financial decisions are shaped not only by how much financial knowledge a person holds but also by the psychological shortcuts and emotional tendencies that guide everyday choices. This study examines the relationship between financial literacy and behavioural biases among individuals in Navsari district, Gujarat, and evaluates how the two factors jointly influence financial behaviour relating to saving, spending, investing, and borrowing. Navsari presents a distinctive setting for such an inquiry: it is a semi-urban, agriculturally and industrially diverse district within South Gujarat, home to a mixed population of salaried employees, traders, farmers, and small business owners, with a recorded literacy rate above the state average yet limited documented evidence on financial literacy specifically. Using a descriptive and quantitative research design, primary data were collected through a structured questionnaire covering demographic characteristics, financial literacy indicators, and commonly observed behavioural biases. The collected responses were analysed using descriptive statistics and inferential tools to test associations between the level of financial literacy, the presence and intensity of behavioural biases, and observed financial behaviour, along with the moderating role financial literacy plays in the biases-behaviour relationship. The study is expected to reveal that while a section of respondents demonstrates reasonable financial knowledge, this knowledge does not consistently translate into rational financial behaviour, as emotional and cognitive biases continue to influence decisions across income and age groups. The findings aim to contribute regionally grounded evidence to the behavioural finance literature, which remains concentrated on metropolitan investor samples, and to offer practical direction for financial institutions, policymakers, and literacy programmes operating in semi-urban Gujarat. The paper concludes with implications for designing targeted financial education interventions that address behavioural tendencies rather than knowledge gaps alone.