Abstarct: This study aimed to elucidate the role of financial literacy in the wealth accumulation of Iraqi households. The research was applied in purpose and employed a descxriptive-analytical, cross-sectional correlational design. The statistical population comprised all heads of households in the Iraqi cities of Baghdad, Basra, and Erbil, from which a stratified random sample of 422 participants was selected. The primary data collection instrument was a structured questionnaire consisting of four sections: demographic information, financial literacy assessment (covering knowledge, attitude, and behavior), savings behaviors, and wealth accumulation indicators. Data analysis was conducted using a one-sample t-test, chi-square test, Pearson correlation, logistic regression, linear regression, analysis of variance (ANOVA), and hierarchical regression (Baron & Kenny method). The findings revealed that the financial literacy level of Iraqi households is significantly below the average. Dominant savings patterns were informal and conservative, heavily reliant on cash and gold. The results further confirmed a significant positive relationship between financial literacy and both portfolio diversification and participation in formal financial markets, alongside a significant negative relationship with high-risk financial behaviors. Analyses revealed significant differences in financial literacy and wealth baxsed on gender, education, and geographic region. Furthermore, savings behaviors were found to play a partial mediating role in the relationship between financial literacy and wealth accumulation. Weak educational infrastructure and distrust in the banking system were identified as the primary barriers to improving financial literacy. Finally, a three-part frxamework encompassing educational infrastructure enhancement, targeted demographic interventions, and facilitation of formal savings was proposed to improve financial literacy and wealth accumulation in Iraq.