Financial Literacy provides the foundation for saving and spending wisely.

It is the basis for the responsible use of money and for making informed financial decisions that can affect our families and our future. In short, financial literacy is a fundamental tool for each of us, whether we are making choices as students, consumers, members of the workforce or responsible citizens and voters.

Can you balance a checkbook? Decode a credit report? Do you know what identity theft is? Understand all of the employee benefits available at your company? Distinguish a secured bond from a debenture? Properly allocate your personal investments? Are you, in short, financially literate?

Many people—too many—are not.  

Financial illiteracy has numerous consequences for individuals and employers. Lack of financial knowledge can affect an individual’s or family’s ability to save for long-term goals and make them vulnerable to severe financial crisis. People who are financially illiterate are reluctant to buy (or enroll in) financial products they need but do not understand.

Financial literacy is a comprehension of financial matters that heightens our ability to interpret and use financial information and data in a way that helps to build and maintain our personal financial security for our families and ourselves. Personal financial literacy is a necessity for all adults and young people too, as they leave high school to begin the transition into work and careers.

Obtaining financial literacy skills can help young people establish more secure futures.