Much research on financial literacy has been widely conducted. Based on international comparison of multi-level knowledge points, this paper shows that the level of financial literacy of Chinese residents belongs to the medium level internationally. Self-assessment of knowledge of economic principles and financial concepts is rather objective. Benefiting from practical experiences, the degree of knowledge of compound interest rate and inflation is similar to that of developed countries, but there exists an cognitive bias on risk diversification, especially on the risk characteristics of financial products, which often manifests as lack of long-term investment philosophy. Faced with the absence of financial regulation and complex financial environment, popularizing financial education, thus improving the level of financial literacy of the public is the most effective way to protect financial consumers’ interests and meet the growing financial needs of the residents.