Financial literacy plays a critical role in shaping an individual’s ability to manage personal finances effectively and make informed economic decisions. This paper examines the correlation between financial literacy and economic development, emphasizing the impact of financial knowledge on individuals' financial behaviours. The study reveals that higher financial literacy leads to improved financial habits, including increased savings, more informed investment choices, and better debt management, which collectively contribute to overall economic growth. A comprehensive bibliometric analysis of literature from 2010 to 2024 highlights the growing scholarly interest in the field, demonstrating its expanding relevance in both academic and policy circles. The analysis identifies key trends, influential authors, and gaps in current research. The paper also discusses the importance of financial literacy in fostering sustainable economic development, particularly in emerging economies. Finally, it proposes future research directions, including the exploration of technology integration in financial education and the long-term macroeconomic effects of financial literacy on economic stability and resilience.