What is financial literacy and why study it?

Financial literacy is a complex of knowledge and skills, thanks to which a person knows how to properly manage available finances and increase capital with the help of available banking and other tools.

Financial literacy is a necessary component of modern life, as it allows a person to solve financial tasks and interact with monetary resources with understanding. Studying this aspect ensures the acquisition of specific skills that help to effectively manage finances at various stages of life.

One of the key aspects of financial literacy is developed budgeting skills. A person who possesses these skills is able to optimally allocate their financial resources between different needs, taking into account the costs of daily needs, recreation and even future retirement.

Financial literacy also includes understanding investments and risks. Individuals who are oriented in these matters can choose the optimal strategies for increasing their capital, while reducing possible losses.

Therefore, financial literacy plays an important role in the formation of financial stability and provides a person with the means to improve his financial condition, which is a necessary element of ensuring a full and healthy lifestyle.