Who is a financially literate person?

financial literacy is not only the ability to rationally spend and save money, but also understanding the complexities of the financial world and the ability to make thoughtful financial decisions. A financially literate person is someone who not only effectively manages their finances, but also develops skills that allow them to adapt to changes in the economy and personal life. One of the key features of a financially literate person is the ability to budget. She understands how to distribute her income between different areas of life, taking into account current and future needs. Cost control and effective planning allow her to achieve financial stability.

The second important characteristic is the ability to invest. A financially literate person understands various investment instruments, risks and opportunities. She actively works on expanding her investment knowledge and knows how to determine the optimal portfolio to achieve her financial goals. No less important is the ability to manage loans and understand the concept of credit history. A financially literate person studies the terms of loans, takes into account the impact on the credit rating and repays obligations on time in order to maintain a high financial status.

In general, a financially literate person is not only someone who understands financial concepts, but also learns from their mistakes, constantly improves his skills and actively maintains a balance between today and tomorrow in the world of money.