financial literacy
Understanding personal finances
Financial literacy is the ability to understand and effectively use financial concepts—budgeting, saving, investing, debt management, and related skills.
Someone with financial literacy can read a loan agreement, compare interest rates, or plan for retirement.
The term often appears in discussions of education policy: Schools should teach financial literacy alongside traditional subjects.
- budgetingAllocating funds systematically
- pay yourself firstAllocate savings immediately
- compound interestReturns on reinvested earnings
- stocksOwnership stakes or inventory
- expense trackingRecording what you spend
debt management · student loans · credit card debt · emergency fund · rainy day fund · credit score · retirement planning · fraud prevention · net worth · inflation · saving · bonds · insurance · interest rates · asset allocation · tax refund · cash flow analysis · mutual funds
- money managementsaving, savings, budgeting, budget planning, expense tracking
- personal financesavings, income, credit, investments, bills
- adult classescooking classes, art classes, computer classes, yoga classes, dance classes
- business skillsmanagement, leadership, deal-making, delegation, risk assessment
- community servicesparks, family services, libraries, family support, schools
- Consumer Financecredit, credit cards, credit score, credit scores, credit reports
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