What are the 3 main components of financial literacy?
There are three main components of financial literacy:
Financial knowledge is the knowledge of how to manage money and invest it wisely. Financial knowledge includes understanding interest rates, credit cards, compound interest, and more.
Financial knowledge is the ability to understand how money works and how it affects your life. It includes understanding basic investing, budgeting and spending, credit card use, and other financial concepts.
Financial knowledge is the understanding of concepts, principles and strategies related to money management. Financial knowledge can be applied to personal finance, business management, investment analysis and other areas of finance.
The concept of financial knowledge is closely related to the concept of financial literacy. The goal of financial knowledge is to provide individuals with the tools they need to make informed decisions about their finances.
Financial skills are abilities that help you make good financial decisions in real life. For example, if you want to buy a house or a car, you need to know how much money it will take and how long it will take you to save up for it. You also need to know how much money you can afford every month for a house payment or car payment.
Financial skills help students and adults to make wise decisions about money, so they can pay for the things they need. Financial skills also help people to save money, so they can afford the things they want.
Financial skills include budgeting and managing a bank account, as well as handling debt and credit.
Financial behavior is about doing what you plan for yourself—whether it's saving money for retirement or buying something with cash instead of credit card debt. Financial behavior is the way a person uses their money. It includes how much money they have, how much they spend, and the types of accounts and investments they use.