Financial literacy is understanding financial concepts, including saving, credit, and debt, that leads to an overall sense of economic well-being and self-trust. It aims to establish a feeling of control over your finances while also using money as a tool to make choices that build greater life satisfaction freely!
Being financially literate can look like this:
- Checking your credit report regularly
- Understanding your retirement savings
- Maintaining an emergency fund for unexpected expenses, and properly replenishing it after you’ve withdrawn money from the account
- Comparing promotions, discounts, credit cards, and loans
- Understanding how to pay off debt