What is Financial Literacy?

Financial literacy is the key to escape poverty and financial despair. It is the ability to understand how money works in the world: how someone earns or saves it, how that person spends or invests it, and how to make money last over time. Financial literacy is not only about being able to do simple arithmetic; it's about understanding the Financial System. And Financial System includes everything from credit and debit cards to insurance and investments. 

Financial literacy empowers people to take control of their financial lives and become active participants in the economy. People who are financially literate are better able to save for retirement, manage their debt, and make sound investment decisions. Financial literacy is therefore a critical life skill that everyone should acquire. It's never too early or too late to start learning about personal finance; the sooner you start, the better equipped you'll be to navigate the Financial System and achieve your financial goals.