The aim of this study is to underscore the influence of financial literacy on financial management of SMEs. Purposive sampling technique was employed to collect data from 150 owner/managers of SMEs operating in the city of Douala using survey questionnaires. Data were analysed using multiple regression analysis. The results showed a positive and significant influence of financial knowledge, financial behaviour and financial attitude on both investment and financing decisions of SMEs. As a result, financial literacy is found to significantly influence financial management of SMEs. Therefore, it is important for owner/managers of SMEs to be financially literate for them to make sound financial management decisions to ensure survival, sustainability, and growth of their businesses.

Keywords: Financial literacy, financial management, SMEs.