Abstract The aim of this study was to identify the Impact of financial stress on life satisfaction. It was assumed that “1-There would be a strong relation between financial stress and life satisfaction 2-People with high financial stress would have low life satisfaction and people with low financial stress would have high life satisfaction”. To explore this hypotheses a sample of 100 participants was selected from different educational institutes of Karachi with the help of Purposeful sampling technique. Among which 50 subjects were males and 50 were females. Half of the sample comprised of individuals with lower financial stress and half of the sample consisted of participants with high financial stress. Correlation survey design was used in order to explore all the variables selected for this research study.Demographic information was investigated through a self designed demographic sheet to gather their personal information and determine socio-economic status from Basic PayScale To measure the stress in life, we used the “Perceived Stress Scale” which is developed by “Cohen, Kamarek and Metmelstein (1983), & to measure the Satisfaction in Life, we used the 4 point rating scale of Life Satisfaction which is developed by Dr. Elia Gourgouris. The Pearson co relational test and t- test was applied to analyze the data. The finding suggests that there is a weak relation of- 0.118 (P<.05) but no significant difference amongst the two groups t=2.37(P>.05) Keywords: Life Satisfaction, Financial Stress