Financial literacy is all about spending money, tracking the money spent, budgeting, deal with real estate, planning about retirement, planning for tax, etc. A person who have the best skill in finance succeeds in life financially both in personally and officially.
A financial illiteracy leads to poor management of money, loss in various aspect, leads to perform illegal operations (not always but in some cases), keeps more debts, etc.
This skill of financial literacy helps a person to in day-to-day aspect to reach all the financial goals.