authors
Jaspreet Kaur and Mohit Gupta

abstract
The management of financial resources requires the capacity to interpret numerical information and the capacity to utilize financial knowledge. Numeracy is the ability to comprehend, use, and interpret numbers in a variety of circumstances and financial literacy is the capacity to apply knowledge and competence to make financial decisions. This study aims to examine the relationship between numeracy skills and financial literacy. A comprehensive review of literature has been conducted to provide insight into the theoretical framework that has been done so far on numeracy skills and financial literacy and also summarizes the findings based on various financial decisions concerning numeracy skills. The findings show that many empirical evidences indicate a high correlation between numeracy skills and financial literacy. Numerical abilities play an important role in enhancing financial literacy. More numerate people are more financially literate and make wise financial decisions. Numerous institutions, governments, policymakers, and schools should provide tools and initiatives to increase numeracy skills and raise financial literacy among people of all ages.