Why Is Financial Literacy Important?
Personal finance is about proper money management in all aspects that will lead you to financial freedom or being financially stable. And to be able to understand this further, one needs to be financially literate. Financial literacy is having the knowledge of understanding financial matters and making proper decisions pertaining to certain personal finance matters like real estate, insurance, investing, saving, tax planning and retirement. It involves understanding financial concepts like compound interest, financial planning, advantageous savings methods, time value of money, etc. (Investopedia) So now we know what personal finance is. Some people think it is only for the rich but it’s not. Some people think it’s difficult because of their meager income but they are totally wrong. Most of us don’t really care but we should at least learn the basics because one of these days, you will thank yourself for it.