Financial insecurity is the state of being insecure in relation with financial matters of an individual. The study was conducted to identify the reasons that trigger financial insecurity, to test the association between levels of financial knowledge and financial insecurity using Chi-Square testing and to find out ways through which financial insecurity can be tackled. Data for the study has been collected from both primary and secondary sources. Area of the study is limited to the respondents of Ernakulam district with the sample size of 100. Data collected has been analyzed and presented in the form of tables, pie chart and bar-graphs. The study concludes by identifying unmanageable debt, unemployment, rising cost of living and poor financial planning as the reasons that trigger financial insecurity among families. The Chi-Square Test proves that there exists a significant association between levels of financial knowledge and financial insecurity. The potential ways through which financial insecurity can be tackled include diversifying sources of income, financial counseling, setting up emergency funds, and strengthening financial networks and community groups.