What is the primary purpose of financial literacy?

The primary purpose of financial literacy is to empower individuals to manage their money effectively and make informed financial decisions. This foundational concept encompasses understanding basic financial principles, such as budgeting, saving, investing, and credit management. By being financially literate, individuals are better equipped to navigate everyday financial challenges, plan for future goals, and safeguard against potential financial pitfalls.

While advanced investment strategies are important, they usually build upon the basics of financial literacy. High-stakes financial negotiations and philanthropic efforts are specialized areas that may require financial knowledge, but they are not the core focus of financial literacy. The essence of financial literacy lies in fostering a comprehensive understanding of personal finance that can serve as the backbone for various financial endeavors throughout life.