What is Financial Literacy?

Financial literacy is understanding and using various financial skills, including personal financial management, budgeting, and investing. It involves knowledge of financial concepts, such as interest, inflation, and risk, and making informed decisions about money matters. Financial literacy is essential for individuals to achieve financial stability and security and to make informed decisions about their financial future.

Financial literacy is essential because it helps individuals make informed decisions about their money and gives them the skills to manage their finances effectively. With financial literacy, individuals can better understand how to budget, save, invest, and protect their assets, leading to financial stability and independence. Additionally, it helps individuals avoid scams, predatory lending, and debt traps and equips them to make intelligent financial decisions that can lead to long-term financial security and prosperity.