"Financial literacy is the possession of skills, knowledge and behaviors that allow an individual to make informed decisions regarding money."
This field focuses on developing skills and knowledge to make informed financial decisions, including budgeting, planning, and investment.
Budgeting: The process of creating a plan to manage one's money and expenses.
Credit Scores: A numerical representation of a borrower’s creditworthiness.
Managing Debt: Strategies for paying off debt and avoiding debt traps.
Saving: Techniques for saving and investment options.
Financial Institutions: Types of financial institutions, services offered, and how to choose the right one.
Taxes: Understanding how taxes work and how it affects an individual’s finances.
Insurance: The importance and types of insurance and how it protects against financial loss.
Retirement Planning: Strategies to plan and save for retirement.
Consumer Protection: Understanding consumer rights and how to avoid scams and identity theft.
Investing: Types of investments, potential risks and returns, and how to get started.
Money Management: Skills for managing and controlling personal finances.
Financial Goals: Setting and achieving financial goals to improve one's financial situation.
Housing: Understanding the costs associated with owning or renting a home.
Estate Planning: The importance of planning for the transfer of an individual's assets after their death.
Entrepreneurship: Knowledge and skills required to start and manage a business.
Budgeting: Understanding how to create and manage a budget by tracking income and expenses.
Investing: Knowing how to invest money in stocks, bonds, mutual funds, etc. in order to grow one's wealth.
Credit management: Understanding how credit works, credit scores, and how to manage and improve them.
Debt management: Understanding how to manage and pay off debt, including credit card debt, student loans, and mortgages.
Retirement planning: Understanding the options and strategies for saving and investing for retirement.
Insurance: Understanding different types of insurance, like life insurance, health insurance, and property insurance.
Taxes: Understanding how to prepare and file taxes, as well as tax laws and regulations.
Financial goal-setting: Understanding how to set and achieve financial goals, like saving for a down payment on a house or paying off debt.
Consumer skills: Understanding how to make informed decisions when buying goods and services, including comparison shopping, reading contracts and agreements, and evaluating sales pitches.
Financial scams and fraud: Understanding how to recognize and avoid financial scams and fraud, like phishing scams or identity theft.
"Raising interest in personal finance is now a focus of state-run programs in countries including Australia, Canada, Japan, the United States, and the United Kingdom."
"Understanding basic financial concepts allows people to know how to navigate in the financial system."
"People with appropriate financial literacy training make better financial decisions and manage money better than those without such training."
"The Organization for Economic Co-operation and Development (OECD) started an inter-governmental project in 2003."
"The objective of providing ways to improve financial education and literacy standards through the development of common financial literacy principles."
"The OECD launched the International Gateway for Financial Education, which aims to serve as a clearinghouse for financial education programs, information, and research worldwide."
"In the UK, the alternative term 'financial capability' is used."
"The Financial Services Authority (FSA) in the UK started a national strategy on financial capability in 2003."
"The US government established its Financial Literacy and Education Commission in 2003."
"The possession of skills, knowledge and behaviors that allow an individual to make informed decisions regarding money."
"People with appropriate financial literacy training make better financial decisions and manage money better than those without such training."
"It aims to serve as a clearinghouse for financial education programs, information, and research worldwide."
"The Financial Services Authority (FSA) in the UK started a national strategy on financial capability in 2003."
"The US government established its Financial Literacy and Education Commission in 2003."
"Raising interest in personal finance."
"People with appropriate financial literacy training make better financial decisions."
"The objective of providing ways to improve financial education and literacy standards."
"Skills, knowledge, and behaviors."
"It allows an individual to make informed decisions regarding money."