If literacy is the ability to use words in written form to understand and take actions in the world, then what is financial literacy?

Question

a. the ability to use economics to interpret financial market trends
B. the ability to use money in its many manifestations

Answer 1

Financial literacy can be best defined as B. the ability to use money in its many manifestations.

This includes the understanding of personal finance concepts such as budgeting, saving, investing, credit, and managing debt, as well as making informed decisions to effectively manage financial resources in daily life. It involves not just knowledge, but the practical application of that knowledge to achieve financial stability and make sound financial choices.