What is Financial Literacy ?

Financial literacy is the education and understanding of various financial areas. It focuses on the ability to manage personal finance matters in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance.

Financial literacy also involves the understanding of financial principles and concepts such as financial planning, compound interest, managing debt, Tax Planning profitable savings techniques and the time value of money. The lack of financial literacy or financial illiteracy may lead to making poor financial choices that can have negative consequences on the financial well-being of an individual.