Financial literacy is a key skill for success in entrepreneurship, as it helps young entrepreneurs build sustainable and successful businesses by reducing financial risks and attracting investment, thereby significantly contributing to economic growth and sustainable development of society. On the other hand, personal financial management plays an important role in enhancing economic decision-making power by Improving planning and cost-control abilities. Therefore, it is expected that personal financial management has an effective impact on financial literacy. Accordingly, the aim of the present study is to empirically examine the effect of personal financial management on financial literacy. To measure personal financial management, the financial planning criteria with 6 sub-variables was used, and to measure financial literacy, all three dimensions of financial knowledge, financial attitude, and financial behavior were considered. The statistical population of this study consists of students at Yazd Branch of Islamic Azad University during Autumn 2024. Data collection was conducted using a standard questionnaire, and based on Cochran's formula, 390 students were determined as the sample size. The data were collected through stratified random sampling and analyzed using a one-way ANOVA test. The results indicate a significant impact of personal financial management on financial literacy. Consequently, familiarizing students with personal financial management methods, including financial planning skills, will increase their knowledge and financial attitudes and lead to effective financial behaviors.