Financial literacy is the ability to understand financial concepts to make informed decisions about money. It supports the development of practical skills that help you manage money wisely, invest effectively, and plan for a secure future.
The main concepts of financial literacy are: earning, budgeting, saving, investing, and credit & debt.
Being financially literate empowers you to gain control over your money, reduce reliance on others, prepare for emergencies, and make better financial decisions, reducing overall stress over money issues.
Income sources like wages, salaries, and side hustles.
Creating a plan to manage expenses and savings.
Build an emergency fund and planning for future needs.
Growing wealth through stocks, bonds, and other assets.
Understand credit score and manage loans effectively.
When you lack financial literacy, you are more likely to:
Learn the essentials of financial literacy using the defense, offence, and playing field analogy
Explore goal setting, money personality, and how our personal views on money can impact our decisions.
