Financial literacy is the cornerstone of sound financial decision-making. It encompasses the knowledge and skills required to manage money effectively, make informed choices, and plan for the future. A financially literate individual understands budgeting, savings, investments, and debt management. They can navigate the complexities of financial markets, assess risks, and make wise investment decisions.

Financial literacy empowers individuals to set realistic financial goals, whether it’s buying a home, saving for education, or planning for retirement. It also fosters a sense of financial responsibility, teaching people the importance of living within their means and avoiding unnecessary debt.

In a broader context, improved financial literacy contributes to economic stability and growth by creating a financially savvy population capable of making informed economic choices. Educational initiatives and resources that promote financial literacy are vital for building a financially resilient and prosperous society.