What is Financial Literacy?
“Regardless of income, people need financial literacy.
That’s as true on the low-end as it is on the high-end,”
Michal Grinstein-Weiss, professor of social work at Washington University.
According to the Government Accountability Office (GAO) financial literacy is: the ability to make informed judgements and take effective action regarding the current and future use and management of money. This includes:
- The ability to understand financial choices.
- Plan for the future.
- Spend wisely.
- Manage the challenges associated with life events such
as a job loss, paying for retirement or a child’s education.