Understanding and being proficient in the use of different financial skills, such as investing, budgeting, and personal financial management, is known as financial literacy. The cornerstone of your relationship with money is laid out by financial literacy, which is a lifetime learning process. The earlier you begin, the better off you will be as education is the secret to financial success.
Several significant financial concepts and skills are referred to as financial literacy.
Financial fraud is typically less likely to affect people who are financially knowledgeable.
A solid foundation in financial literacy can assist a variety of life objectives, including managing debt wisely, starting a business, and saving for retirement or school.
Knowing how to make a budget, prepare for retirement, manage debt, and keep track of personal spending are all important components of financial literacy.
Reading books, listening to podcasts, subscribing to financial information, or conversing with a financial expert are all ways to gain financial literacy.
Financial goods and services have expanded across society more and more in recent decades. While prior generations of Americans might have mostly paid cash for their purchases, different credit instruments, like credit and debit cards and electronic transfers, are now widely used. Only 20% of payments were made in cash, according to a 2021 poll by the Federal Reserve Board of San Francisco, with credit cards accounting for 28% of all transactions.