What is financial literacy?
Understand the Problem
The text in the image discusses the concept of financial literacy, highlighting its importance, benefits, and how it can be achieved. It defines financial literacy and its role in personal finance management.
Answer
Financial literacy is understanding and using financial skills like budgeting and investing.
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.
Answer for screen readers
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing.
More Information
Being financially literate helps individuals manage money effectively, avoid debt, and achieve long-term financial goals, contributing to financial security and autonomy.
Tips
Avoid confusing financial literacy with just having a basic understanding of money. It involves practical skills like budgeting and managing debt.
Sources
- Financial Literacy: What It Is, and Why It Is So Important To Teach - investopedia.com
- What Is Financial Literacy? - Experian - experian.com
- Financial Literacy - Overview, Benefits, Importance - corporatefinanceinstitute.com
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