Financial literacy can be referred to as the set of skills and knowledge that allows an individual to make informed and effective financial decisions. Understanding the degree of financial literacy of individuals has come to be ever more important for policy makers in recent years as financial markets have become more sophisticated and risks and responsibilities have increasingly been shifted away from institutions to individuals. The study included in this book constitutes the first representative empirical research on financial literacy levels of the adult population in Switzerland. It provides important information about how well individuals in Switzerland understand simple financial concepts. Financial literacy in this book is defined on the basis of three standardized questions about interest rates, inflation and risk which allow for a comparison of financial literacy levels among different countries. Adding to the existing literature in the field of financial literacy, survey results are reconciled to socio-demographic characteristics of survey participants such as to better understand “who knows what”. Moreover, an in-depth examination of the relationship between financial literacy and its effects on decision making in regards to borrowing, investing and retirement saving is performed.