Financial literacy has greater importance in our society as the result of the innovation in financial products and challenging economic landscape. It’s also explained on the attitudes toward saving and financial management practice. In fact, individuals who possess low financial literacy and do not have a proper budget plan or practice financial discipline brings inevitably to the issue of mistakes. A survey by Bank Negara Malaysia (BNM) revealed that a majority of 3000 Malaysian does not practice proper budget plan. Therefore, this paper will carry out literature review to discuss the impact of financial literacy on the financial behaviour. It is expected to shed light on the level of financial literacy in Malaysia and measures taken to promote better financial behaviours among public. Various sources of secondary data were utilized to assist the discussion on the level of financial literacy, financial literacy and financial education. Major significant factors influenced the level of financial literacy among individuals but it is varying according to age, income level, gender and family background. It is expected that many, if not most people really needs for financial literacy improvement to make important financial decision in their own best interests, and this should be started in the early childhood.