What is financial literacy ?

Financial literacy is the ability to understand and effectively manage one's personal finances. It involves having the knowledge and skills to make informed decisions about budgeting, saving, investing, and managing debt. Financial literacy also includes understanding concepts such as interest rates, credit scores, taxes, and insurance. By being financially literate, individuals are better equipped to make sound financial decisions that can lead to long-term financial stability and success.

Financial literacy is the ability to understand and manage money effectively. It involves having the knowledge, skills, and confidence to make informed decisions about personal finances. Financially literate individuals are able to:

- Budget and track their income and expenses: They create a budget that allows them to live within their means and track their spending to stay on top of their finances.
- Save and invest: They understand the importance of saving for the future and investing to grow their wealth.
- Handle debt responsibly: They manage their debt by understanding the different types of debt, interest rates, and repayment strategies.
- Protect against financial risks: They take steps to protect themselves and their finances from unexpected events, such as insurance, emergency funds, and retirement planning.
- Plan for the future: They think ahead and plan for their financial goals, such as buying a home, paying for education, and retiring comfortably.

Financial literacy is crucial for individuals to achieve financial security and well-being. It helps them make sound financial decisions, avoid costly mistakes, and ultimately improve their quality of life.

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