Financial literacy helps individuals to improve their level of understanding of financial matters which enables them to process financial information and make in-formed decisions about one’s finances. Financial literacy has a direct relationship to the well being of individuals. It is difficult for a common man to understand the risk associated with various financial products. So as to understand risk and return associated with these products, a certain level of financial literacy is required. People who a financially literate can make effective use of these financial products and services by evaluating associated risks and returns and finally choosing those products which are suitable to them. Thus persons who are financially literate can make effective use of financial products and services and will not get cheated by sales people selling financial products unsuitable to them. Through this paper an attempt has been made to know whether financial literacy affects the personal savings of IT employees.