Financial literacy is the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. It empowers you to make informed decisions about your money.

Being financially literate helps you manage debt, save for the future, and avoid common financial pitfalls. It can lead to improved decision-making and greater financial security over time.

Start by desiring to change your mindset. Practicing good financial habits—like budgeting, saving, and investing—will further enhance your understanding over time.

Credit is a way to borrow money that you agree to repay over time, often with interest. A good credit score, built on responsible borrowing and timely payments, can open doors to better loan terms and interest rates.

Set specific savings goals, automate transfers to your savings account, and build an emergency fund. Even small, regular contributions can add up over time.

Investing involves putting your money into assets like stocks, bonds, or real estate with the goal of generating returns. It’s a way to grow your wealth over time, although it comes with risks that you should understand.

An emergency fund acts as a financial safety net for unexpected expenses or income disruptions. Experts often recommend saving three to six months’ worth of living expenses to protect against emergencies.