What is financial literacy and how can we improve it
Financial literacy allows us to make the most of our money and make financial decisions with confidence. In this article, we explore what financial literacy is and three steps we can take to further improve it.
Financial literacy refers to a person’s ability to understand financial concepts, products and risks. Being financially literate can have a huge impact on our financial position: people that display good levels of financial literacy are less likely to fall victim to scams and get into trouble with debt. Moreover, a number of recent studies have observed that low levels of financial literacy and confidence can seriously inhibit our mental wellbeing.
Put simply, money plays a huge role in all of our lives. It’s only natural, therefore, to want to get the most out of our hard-earned cash. Ultimately, our interactions with money boil down to financial decisions about how to balance saving and spending as well as our long-term and short-term goals.