Last global financial crisis emphasized the role of financial literacy in maintaining financial stability. In Croatia, financial literacy is not a widespread topic, and the goal of this thesis is to explain the importance of acquiring financial literacy as a factor of insuring prosperity of an individual. Secondary sources were used in the thesis, i.e. statistical data from relatively new research on the level of financial literacy in Croatia. The making of this thesis was based on systematically study of available expert literature, books, articles, scientific papers and presentations. Financial literacy of Croatian population is unsatisfactory and concrete measures for its improvement were not taken. Primarily, a national survey on financial literacy in Croatia is necessary in order to create an effective plan for financial education. Financially educated citizens can contribute to an efficient transmission of financial effects on the real sector and consequently secure economic growth. In conclusion, it is necessary to increase financial literacy of citizens. That way, long term cooperation would be secured between banks and well-informed citizens who have confidence in their financial decisions and in the banks they do business with; financial inclusion would increase, and indebtedness and uncertainty in the population would decrease, and consequently, financial stability would be secured.