Financial literacy is the ability to understand and use financial concepts when making decisions about saving, spending, borrowing, investing and protecting money. Smart money management translates this knowledge into practical habits such as budgeting, regular saving, responsible borrowing, goal-based investing and maintaining emergency funds. This paper examines the relationship between financial literacy and smart money management in India through secondary data and documentary analysis. It draws on publications and datasets from the Reserve Bank of India (RBI), the National Centre for Financial Education (NCFE), and the World Bank’s Global Findex Database 2025. The Global Findex 2025 edition uses nationally representative surveys of approximately 148,000 adults across 141 economies, conducted during 2024, and includes indicators on formal and informal financial services, saving, borrowing, payments and financial risk management [1]. India’s National Strategy for Financial Education 2020–2025 promoted a coordinated ‘5 C’ approach involving content, capacity, community, communication and collaboration [2]. The analysis indicates that access to financial products should be accompanied by the knowledge and behaviour needed to use them effectively. The paper recommends practical financial education, transparent product information, digital-safety awareness and regular budgeting habits. As this is a secondary-data study, it does not claim to measure the financial literacy of a new sample or establish causal relationships.

Vishal S. Badwaik, Prof Kushal M. Dharmik, "A Study on Financial Literacy and Smart Money Management" International Journal of Scientific Research and Engineering Development, V9(5): Page(1628-1633) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.