Define 'financial literacy.'

Financial literacy encompasses the knowledge and skills required to make informed and effective decisions regarding financial resources. It involves understanding various aspects of finance, including budgeting, investing, managing debt, and understanding how different financial products work. This comprehension enables individuals to analyze their financial circumstances, weigh options, and make choices that positively impact their financial wellbeing.

While the ability to read financial reports, understanding legal financial terms, and obtaining a certification in financial education are all valuable components of financial acumen, they do not encapsulate the broader concept of financial literacy. Financial literacy is more comprehensive, emphasizing practical skills and critical thinking in financial matters, which enables individuals to navigate the complex financial landscape successfully.