Financial Literacy

Financial literacy refers to the possession of knowledge and understanding of basic financial matters. It entails the knowledge required for making sound decisions pertaining to financial products, such as investments, insurance, savings, real estate, tax planning, and retirement, that affect financial well-being. It is also helpful to understand the concept of the time value of money, the basic differences between simple and compound interest, the use of credit versus debit cards, advantageous savings methods, and citizens’ rights as consumers. The goals are to improve the results or outcomes of their financial choices based on sound financial knowledge and competencies. Specifically, all consumers should have a basic understanding of financial concepts and key financial products, be comfortable discussing money and financial issues, and be able to ...