Monday, May 7, 2012

What is Financial Literacy

Financial Literacy:The ability to effectively evaluate and manage one’s finances in order to make prudent decisions toward reaching life’s goals
The understanding of:
  • Money
  • Cash flow
  • Basic economic/financial concepts
  • Debt/risk management.
Achieving financial literacy: Five Key Areas of Personal Finance:
  • Money and income
  • Money management
  • Spending and debt
  • Savings and investments
  • Risk management
Money and income:Its important to take care of the following:
  • Time is money
  • Money management
  • Budgeting
  • Prioritizing

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