What is financial literacy?

Financial literacy encompasses a broad range of skills and knowledge related to managing personal finances effectively. This includes understanding budgeting, saving, investing, debt management, and even navigating financial products and services. Being financially literate means that an individual can make informed and effective decisions regarding their financial resources, leading to better overall financial health.

While the ability to read financial statements, understanding tax regulations, and investing are all parts of financial literacy, they do not encompass the entire scope of what it means to be financially literate. This broader perspective allows individuals to navigate complex financial landscapes, make responsible spending choices, and plan for the future, including retirement and emergencies. The focus on successful personal finance management highlights the ultimate goal of financial literacy—to empower individuals to take control of their financial lives comprehensively.