Money in Real Life · 45 sec
Financial literacy
A practical idea for making clearer everyday money decisions.
The useful idea
- The useful idea
Financial literacy is the possession of skills, knowledge, behavior, and attitude that allow an individual to make informed decisions regarding money.
- How it works
Financial literacy, financial education, and financial knowledge are used interchangeably.
- Why it matters
Financially unsophisticated individuals cannot plan for their future because of their poor financial knowledge.
Why this matters
Use Financial literacy to compare the trade-offs before committing money.
Try this
Use Financial literacy to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Financial literacy?
- The useful idea — correct
- How it works
- Why it matters
Financial literacy is the possession of skills, knowledge, behavior, and attitude that allow an individual to make informed decisions regarding money.
General education only — not personal financial advice.