This paper assesses the growing body of economic research on financial literacy. It begins by reviewing theoretical research that views financial knowledge as a form of human capital investment. This perspective has implications for welfare and policies aimed at enhancing financial literacy. The paper then examines recent surveys to determine the extent of financial literacy among the population, identifying subgroups with the least financial savvy. It explores the impact of financial literacy on economic decision-making in the United States and other countries, highlighting the costs of financial ignorance. The literature suggests that while some individuals may choose to invest little in financial knowledge, it can still be socially optimal to enhance financial literacy early in life. The paper concludes with thoughts on what remains to be learned to better inform theoretical and empirical models and public policy.This paper assesses the growing body of economic research on financial literacy. It begins by reviewing theoretical research that views financial knowledge as a form of human capital investment. This perspective has implications for welfare and policies aimed at enhancing financial literacy. The paper then examines recent surveys to determine the extent of financial literacy among the population, identifying subgroups with the least financial savvy. It explores the impact of financial literacy on economic decision-making in the United States and other countries, highlighting the costs of financial ignorance. The literature suggests that while some individuals may choose to invest little in financial knowledge, it can still be socially optimal to enhance financial literacy early in life. The paper concludes with thoughts on what remains to be learned to better inform theoretical and empirical models and public policy.