What Does Finacial Literacy Mean?

Financial Literacy
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be because education is the key to success when it comes to money.

Why Financial Literacy Is So Important

Many consumers have little understanding of finances, how credit works, and the potential hit to financial well-being that poor financial decisions can create for many, many years. In fact, a lack of financial understanding has been signaled as one of the main reasons many Americans struggle with saving and investing.1


  • KEY TAKEAWAYS
    The term financial literacy refers to a variety of important financial skills and concepts.
    People who are financially literate are generally less vulnerable to financial fraud.
    A strong foundation of financial literacy can help support various life goals, such as saving for education or retirement, using debt responsibly, and running a business.