What is financial literacy?
Understand the Problem
The content discusses the concept of financial literacy, its importance, and how it can be acquired. It defines financial literacy, explains its benefits, and describes methods for gaining financial knowledge.
Answer
Financial literacy is understanding and effectively using financial skills like management, budgeting, and investing.
Financial literacy is the ability to understand and effectively use financial skills, including personal management, budgeting, and investing. It forms a foundation for making better financial decisions, achieving goals like saving for education or retirement, and avoiding fraud.
Answer for screen readers
Financial literacy is the ability to understand and effectively use financial skills, including personal management, budgeting, and investing. It forms a foundation for making better financial decisions, achieving goals like saving for education or retirement, and avoiding fraud.
More Information
Financial literacy helps individuals make informed decisions to achieve financial security and avoid common pitfalls such as excessive debt or fraud.
Tips
Common mistakes in understanding financial literacy include focusing only on saving without considering investing or managing debt effectively.
Sources
- Financial Literacy: What It Is, and Why It Is So Important To Teach ... - investopedia.com
- What Is Financial Literacy? - Experian - experian.com
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