schmal
narrow
Having little width in relation to length or height; not wide.
Der Weg zum Gipfel ist sehr schmal und steil.
The path to the summit is very narrow and steep.

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narrow
Having little width in relation to length or height; not wide.
Der Weg zum Gipfel ist sehr schmal und steil.
The path to the summit is very narrow and steep.

The meaning of 'schmal' depends strongly on the noun it describes. If it refers to a place or object, it means 'not wide'. If it refers to a person, it means 'thin'. If it refers to finances, it means 'limited' or 'tight'.
Wir gingen einen schmalen Pfad entlang.
We walked along a narrow path.
In the meaning 'not wide', 'schmal' is often used to describe paths, rooms, or objects. Typical examples are: 'eine schmale Straße' (a narrow street), 'eine schmale Gasse' (a narrow alley), 'ein schmaler Korridor' (a narrow corridor), or 'ein schmales Bett' (a narrow bed).
Das Auto passte kaum durch die schmale Gasse.
The car barely fit through the narrow alley.
When 'schmal' describes a person or body parts, it means 'slim' or 'delicate'. Common combinations are: 'eine schmale Taille' (a slim waist), 'schmale Hüften' (narrow hips), 'schmale Lippen' (thin lips), or 'eine schmale Figur' (a slim figure).
Das Model hatte sehr schmale Schultern.
The model had very narrow shoulders.
The meaning 'limited' or 'small' is figurative and usually refers to financial means or resources. Typical expressions are: 'ein schmales Budget' (a limited budget), 'ein schmales Einkommen' (a modest income), or 'eine schmale Rente' (a small pension).
Als Studentin musste ich mit einem schmalen Budget auskommen.
As a student, I had to get by on a limited budget.
scarce / just under / close
'knapp' and 'schmal' can both express that something has little space or a small amount. 'schmal' usually describes width: a path, a table, or a face is not wide. 'knapp' more often means that something is just enough or almost too little, for example time, money, or space. With clothing, 'knapp' can mean that it is very tight or short. Learners may confuse the words because both can come to mind when there is little space. For shape or width, 'schmal' usually fits; for an amount that is almost insufficient, 'knapp' fits.

Der Weg durch den Garten ist schmal, aber gut zu gehen.
The path through the garden is narrow, but easy to walk on.
Vor dem Zug bleibt uns nur noch knappe Zeit.
Before the train, we have only very little time left.