What is financial literacy?

Financial literacy refers to a person's understanding of monetary systems in the world and in relation to their own finances. When one is financially literate, he or she will be able to manage his or her finances in a way that promotes financial well-being.

Those with adept financial literacy will plan for the future while also maintaining finances in the present. Thus, financial literacy is about balancing a checkbook, paying bills, borrowing responsibly, and investing appropriately while also being financially proactive for the future.

Money management is a life necessity. The more able one is, the more he or she might be able to prepare for a fiscally advantageous future.