Youth unemployment and poverty in Uganda's urban and peri-urban areas have reached crisis proportions, with over 70% of young people aged 18–35 lacking formal employment and adequate financial management skills. This study examines the relationship between financial literacy levels and poverty management outcomes among youths in Kira Municipality, Wakiso District. A cross-sectional survey design was employed, with data collected from 340 youths using stratified random sampling across six wards of the municipality. Financial literacy was measured across four dimensions: budgeting knowledge, savings behavior, credit management, and investment awareness. Poverty management was operationalized through income stability, asset accumulation, and food security indicators. Results indicate that financial literacy levels in the study area are moderate (mean score 3.1/5.0), with significant deficits in credit management and investment awareness. A strong positive correlation (r = 0.71, p < 0.001) was found between overall financial literacy scores and poverty management outcomes. Multiple regression analysis confirmed that financial literacy is a significant predictor of poverty reduction, even after controlling for education level, employment status, and household size. The study recommends community-based financial education programs, integration of financial literacy into secondary school curricula, and youth-targeted savings mobilization schemes.