Why is financial literacy important? What is the relevance of financial literacy for financial decisions and outcomes? These are the main questions that this chapter attempts to answer, through evidence from the main high-impact scientific studies available in the literature on financial literacy. Specifically, this chapter investigates the relationship between financial literacy and various specific financial decisions and outcomes, such as saving, investments, retirement, or insurance, through the collection of findings from the literature, which describes these relationships in different contexts and among various targets, showing how financial literacy may positively affect savvy financial behaviors and the overall economic well-being of individuals and society.