The behavioral economics and finance literature shows that deviations from rational behavior, namely biases, are systematic and, therefore, predictable. In the realm of finance, biases lead to suboptimal outcomes for individuals and even crises in markets that might be limited to a single economy or can spread throughout the economies worldwide due to the globally integrated financial markets. In the last decade, many countries have adopted education and / or training programs to increase financial literacy as attempts to improve individuals’ financial knowledge and skills. However, the effectiveness of financial literacy for implementing rational financial behavior remains subject to debate. This study aims to experimentally investigate the problem by addressing the following research questions: (1) Does financial education lead to financial literacy? (2) Compared to financial illiterates, are financially literate people less likely to have biases? What is the role of economic preferences (i.e., time and risk preferences) in this context? (3) Are financial biases correlated? We employ a controlled laboratory experiment and a field survey to answer the research questions. Our results show that financial education implements financial literacy; however, financially literate people do not suffer less from most of the biases. We find that some biases coexist independent of their being classified as cognitive or emotional in the literature. Our findings also indicate the role of economic preferences as well as age and gender for acquired financial biases.