Which of the following best describes a benefit of financial literacy?

The benefit of financial literacy is that it empowers individuals to make informed financial decisions. Financial literacy equips individuals with the knowledge and skills necessary to understand financial concepts, such as budgeting, saving, investing, and managing debt. When people are financially literate, they can analyze their options, weigh the risks and rewards of different financial choices, and ultimately make decisions that align with their goals and values.

Having a strong grasp of financial principles helps individuals avoid common pitfalls, fosters independence in managing their finances, and encourages proactive planning for their future. In contrast, options that suggest discouraging investment or promoting dependency on financial advisors undermine the essential purpose of financial literacy, which is to equip individuals to take control of their financial lives. Similarly, limiting one's understanding of credit would be counterproductive to the goals of financial empowerment and informed decision-making.