What is the definition of personal financial literacy?

The definition of personal financial literacy encompasses a broad understanding of financial concepts and the ability to apply these concepts effectively in real-life situations. This involves skills such as budgeting, understanding banking services, managing debt, saving, and investing. As such, the correct choice highlights the comprehensive nature of financial literacy, emphasizing the importance of not only knowledge but also the ability to implement various financial skills in one's life.

The other choices focus on more specific aspects of finance: saving money, investing in the stock market, or managing business financial statements. While these are important elements of personal finance, they do not encompass the full range of skills and knowledge required to be considered financially literate. Personal financial literacy is broader and includes understanding and using a variety of financial tools and practices effectively.