Today, financial literacy (FL), considered a life skill, has gained importance especially so after the global financial crisis (GFC) and covid-19. Researchers have uncovered evidence that financially literate people make better financial decisions and thus, have higher financial well-being (FW). In India, more people have access to financial institutions and have bank accounts, but the majority lack financial literacy making them fall into the vicious cycle of debt and poverty. A financially literate person not only saves judiciously building assets in the process but also knows when, how, how much and from where to take loans. Knowledge about finances makes the person feel secure adding to his well being. This paper studies select literature on the link between financial literacy and well being and identifies important variables that explain the interlinkages between the two. The identification and understanding of the link between financial literacy (FL) and financial well being (FW) can go a long way in national financial literacy programmes to empower lives. The findings indicate that just having knowledge is not enough, actual change in the financial behaviour(i.e. budgeting, avoiding impulse buying,) makes the real difference. The research found that mental factors like self confidence and determination acts as shield at the time of financial crises. Digital banking and apps are becoming as important as knowing how to save.