This study examines financial literacy and its association with financial anxiety among the Malaysian population during the Covid-19 pandemic. Specifically, it evaluates the public’s understanding of the government’s financial relief initiatives, such as the Moratorium and EPF withdrawal schemes (i-Sinar, i-Lestari, and i-Citra). Using a survey of 372 respondents, the research measures financial literacy and anxiety levels through a Likert-scale questionnaire incorporating the Financial Anxiety Scale (FAS). Results indicate that only 9% of respondents demonstrated high financial literacy concerning these relief schemes, with factors like age and education significantly influencing literacy levels. The study also reveals a positive correlation between financial literacy and financial anxiety. These findings underscore the need for improved financial education to mitigate financial stress, particularly in crisis situations like the pandemic.