Financial literacy is the knowledge and ability to successfully manage one’s finances. The lack of financial literacy can be a detriment to a person getting ahead financially. Being financially literate consists of a number of components but generally includes financial planning, budgeting, paying off debt, investing, planning for college, estate planning, and understanding how interest is calculated. Financial literacy is also about our attitude toward money, which ultimately affects our decisions about spending and saving money. Financial literacy can be obtained by reading about personal finance and working with a financial advisor.
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