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Research Guides

Financial Fitness: What is Financial Literacy?

Financial Literacy

Financial literacy is defined as, “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well being” (President’s Advisory Council on Financial Literacy in 2008).

Financial literacy includes skills, including: 

  • Budgeting
  • Building an emergency fund
  • Understanding how credit works
  • Understanding how credit cards work
  • Understanding how interest compounds over time (tie into savings concept)
  • Understanding the basic concepts of a mortgage
  • Understanding basic insurance needs and products
  • Awareness and understanding of what programs/benefits are available to you through your employer or membership organizations
  • Having a retirement plan

To learn more about financial literacy, click on the personal finance and student debt tabs.

The Value of Financial Literacy

Infographic: The Value of Financial Literacy with Illustrations by Jude Buffum taken from Edutopia

 

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Robert Perret
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