What is the purpose of financial literacy?

The purpose of financial literacy is fundamentally about equipping individuals with the knowledge and skills necessary to manage their financial resources effectively. This includes understanding budgeting, saving, investing, and making informed financial decisions that can lead to long-term financial stability and success. Being financially literate allows individuals to navigate the complexities of personal finance, understand their financial rights, and plan for future economic needs.

While learning about economic trends, investing in the stock market, and understanding government fiscal policies can be valuable aspects of finance and economics, they do not encapsulate the broader goal of financial literacy. The primary focus is on the individual’s ability to comprehend and utilize financial concepts in their everyday lives, ensuring they can make sound decisions regarding their personal finances.