Financial literacy has emerged as a critical life skill in the 21st century, particularly for young people navigating an increasingly digital and complex financial environment. This paper examines the growing financial literacy gap among youth, emphasizing its implications for personal well-being, national productivity, and sustainable economic growth. It analyzes barriers such as limited access to structured financial education, overreliance on social media for financial advice, and the rising incidence of digital scams. Drawing on global comparisons, it highlights how countries like Singapore, Canada, and Australia have successfully integrated financial literacy into school curricula, while India continues to lag. The study underscores the urgent need to embed financial education into formal schooling, enhance teacher training, and strengthen digital financial awareness. Government initiatives such as the National Strategy for Financial Education (NSFE 2020–2025) demonstrate progress, yet a stronger post-2025 roadmap is essential. The paper concludes that equipping youth with financial skills not only improves individual financial resilience but also drives entrepreneurship, savings, and inclusive national development.