The main objective of the present research is to identify importance of financial literacy is growing in such economically and socially difficult situations. The aim of the study was to find out how a COVID-19 pandemic affects people's decisions regarding personal financial management in Latvia. The research is based on the analysis of the theoretical literature and quantitative analysis based on structured questionnaire was used to obtain empirical data. Empirical data processing and analysis were carried out in SPSS statistical package. The article findings trends, in Latvian households before COVID-19 over the last decade, the risk of poverty has increased convincingly certain groups in society.