ABSTRACT
The study sought to establish the effect of financial literacy on financial management practices of employees of public primary schools in Mombasa County, Kenya. Specifically, the study focused on; savings and investment literacy, debt literacy, retirement literacy and taxation and insurance literacy. The study adopted a descriptive study design and a population of 2101 from which a sample of 336 employees were engaged in the study. Data was collected by use of questionnaires. Regression and correlation analysis was done to establish the relationships between the study variables. The study established that; savings and investment literacy has a weak positive and insignificant correlation to financial management practices; retirement literacy has a strong positive and significant correlation to financial management practice; debt literacy has strong, positive and significant correlation to financial management practices and taxation and insurance literacy had a strong, positive and significant correlation to financial management practices The overall finding was that financial literacy has a strong positive correlation to financial management practices. Therefore, there is a strong correlation between financial literacy and the financial management practices of employees of public primary schools in Mombasa County, Kenya. The study recommends; adoption of financial literacy programs for non-teaching staffs in public primary schools; teacher’s service commission to lobby financial professionals and trade associations to sensitize their members on sound financial management matters.