In the simplest of terms, financial literacy is the ability to understand and manage your finances effectively. This includes having knowledge and skills related to areas within money management such as budgeting, saving, debt management, and even investing. Financial literacy is also the foundation upon which we make informed financial decisions to achieve our money goals and secure our financial future.

I would argue to say, the primary benefit of financial literacy is empowerment. I say this because it enables us to take control of our finances, make informed financial decisions, thus reducing our money stresses, and in turn, allowing us to focus on a clear path to financial success.

Financial literacy also helps to promote economic stability on both individual and societal levels. When more of us have a better grasp of financial principles, it can lead to greater economic stability and resilience. When we are more financially informed and knowledgeable, we are less likely to engage in risky money behaviors and are better able to contribute to a healthier financial ecosystem.

In and of itself, financial literacy is a vital skill that empowers each of us to take control of our financial destinies. Its benefits extend well beyond our personal financial security. If we invested more in financial education: teaching others about credit, how to manage a budget, and even how to start a business, we would pave the way for a more financially fit society and better economic times.