What is the primary goal of personal financial literacy?

The primary goal of personal financial literacy is making informed and effective financial decisions. This encompasses a wide range of skills and knowledge, including budgeting, saving, investing, planning for retirement, managing debt, and understanding credit. When individuals are financially literate, they are better equipped to evaluate their options, understand the long-term impacts of their choices, and make decisions that align with their financial goals and values.

Being financially literate enables people to navigate complex financial landscapes more confidently and reduces the risk of making poor financial choices that could lead to negative consequences. It provides the tools necessary to assess financial situations critically, ensuring individuals can take proactive steps towards achieving financial independence and stability, rather than simply focusing on short-term gains or reacting to financial challenges as they arise.