Financial Literacy

Extracted Attributes

• Key Concepts

  Compound interest, budgeting, debt management, investing

• Core Principles

  Earning, spending, saving, borrowing, and protecting

• Global Resource

  International Gateway for Financial Education

• Proposed Investment

  $1,000 per child at birth (Trump Accounts)

• Alternative Term (UK)

  Financial capability

Timeline

• The OECD initiates an inter-governmental project to develop common financial literacy principles. (Source: Wikipedia)

  2003-01-01

• The UK Financial Services Authority launches a national strategy on financial capability. (Source: Wikipedia)

  2003-01-01

• The United States government establishes the Financial Literacy and Education Commission. (Source: Wikipedia)

  2003-01-01

• The OECD launches the International Gateway for Financial Education as a global clearinghouse. (Source: Wikipedia)

  2008-03-01

• The Trump Administration targets 2025 for 'setting the table' for economic policies including Trump Accounts to boost literacy. (Source: Document 514d8ad8-2026-4107-9514-1e7e61217d6e)

  2025-01-01

Financial literacy

Financial literacy is the possession of skills, knowledge, and behaviors that allow an individual to make informed decisions regarding money. Financial literacy, financial education, and financial knowledge are used interchangeably. Financially unsophisticated individuals cannot plan financially because of their poor financial knowledge. Financially sophisticated individuals are good at financial calculations; for example they understand compound interest, which helps them to engage in low-credit borrowing. Most of the time, unsophisticated individuals pay high costs for their debt borrowing. Raising interest in personal finance is now a focus of state-run programs in Australia, Canada, Japan, the United Kingdom, and the United States. Understanding basic financial concepts allows people to know how to navigate the financial system. People with appropriate financial literacy training make better financial decisions and manage money than those without such training. The Organization for Economic Co-operation and Development (OECD) started an inter-governmental project in 2003 to provide ways to improve financial education and literacy standards through the development of common financial literacy principles. In March 2008, the OECD launched the International Gateway for Financial Education, which aims to serve as a clearinghouse for financial education programs, information, and research worldwide. In the UK, the alternative term "financial capability" is used by the state and its agencies: the Financial Services Authority (FSA) in the UK started a national strategy on financial capability in 2003. The US government established its Financial Literacy and Education Commission in 2003.

Web Search Results

• Financial Literacy | Library | Knowledge Center - FSA Partner Connect

  # Financial Literacy Financial literacy refers to the understanding that includes how to earn, manage, and invest money and has a critical impact on students' ability to make smart choices. Possessing the skills and information about which institutione of higher education to attend, what to study, how to pay for college, and how to manage student loan debt can help students to build their financial futures. Financial Literacy publications are listed below.

• Financial Literacy: What It Is, and Why It Is So Important to Teach ...

  Financially literate people can cope with the basics of spending, saving, borrowing, and planning. A strong foundation in financial literacy supports life goals, such as paying for education or retirement, using debt responsibly, and running a business effectively. Financially literate people are not vulnerable to fraud. Key aspects of financial literacy include learning how to create a budget, plan ahead, and make wise decisions about investing. [...] ## Strategies to Improve Financial Literacy Skills Developing financial literacy involves learning and practicing skills related to budgeting, managing debt, paying off debts, and more. It means understanding and using credit and investment products wisely. The good news is that, no matter where you are in life and financially, it’s never too late to start practicing good financial habits. Here are several practical strategies to consider. ### Create a Budget [...] ## What Are the Principles of Financial Literacy? There are five broad principles of financial literacy. Although other models may list different key components, the overarching goal of financial literacy is to teach individuals about earning, spending, saving, borrowing, and protecting their money.10 ## The Bottom Line Financial literacy is the knowledge of various aspects of personal finance and the ability to make smart decisions about money.

• Financial Literacy: The Guide to Managing Your Money

  Financial literacy is important because it empowers you to make informed and responsible financial decisions. It helps you understand concepts like budgeting, saving, investing and debt management. It allows you to make better decisions through problem-solving, critical thinking and having a grasp of essential facts and concepts related to basic personal finance. Building your financial literacy helps you create a secure future, avoid financial pitfalls and achieve your financial goals. [...] Financial literacy is the ability to make wise decisions with your money. The five principles of financial literacy are earning, saving, borrowing, spending and protecting assets. Financial literacy helps you make better financial decisions and improves overall financial well-being. Financial literacy skills include finding, understanding and using resources for informed decision-making. Developing financial literacy skills promotes financial self-sufficiency and stability. [...] Financial literacy empowers you to be in control of your financial well-being and build a secure future. The five principles of financial literacy enable you to use money wisely, make informed decisions about your finances, create budgets, manage debt and plan your financial future. 17 Min Read Fact Checked Annuity.org partners with outside experts to ensure we are providing accurate financial content.

• Financial Literacy – Welcome to ALA's Literacy Clearinghouse

  Financial Literacy is defined in slightly varying ways, but most definitions are much like this one from the National Financial Educators’ Council: “Possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual’s personal, family and global community goals.” () ### ALA Resources Financial Literacy (PLA)

• What Is Financial Literacy and Why Is It Important?

  Financial literacy is not only having knowledge about financial terminology or how to manage money but also using and implementing that knowledge. For example, it’s not only important to know that having an emergency fund is beneficial, but also to use that knowledge to take action by establishing a monthly contribution to a savings account. [...] If someone asked you to define "financial literacy," how would you do it? A quick internet search would likely return plenty of definitions that make it seem like being financially literate is a fancy way to say having financial knowledge or an understanding of finances. Perhaps an inquiry to friends would provide examples about topics that one would need to know about, such as budgeting, saving or investing. [...] At GCU, you can improve your own financial literacy by enrolling in the personal finance course FIN-210, which explores various categories of personal finance topics. If you would like to pursue a career in which you help others with their financial planning, you may want to consider the BS in Finance with an Emphasis in Financial Planning.