financial literacy
What is financial literacy?
Understanding how to spend and save your money wisely
What is financial illiteracy?
Not understanding how to use your money and save.
How does it affect a person? How does it affect the population as a whole?
Depending on how you are with your financial literacy you can either have a great saving account or be in total debt. When people are financially illiterate as a whole they bring down our economy.
What are the factors that affect financial literacy?
The factors are knowledge, schooling, and mistrust of financial institutions.
What are some of the behaviors/copings skills of those with limited literacy skills?
They spend beyond their means. Acting out when they get upset. Use their resources wrong because they don’t understand.
How can you test for financial literacy?
You can take a financial literacy test online to see how much you know on the topic.
Do you think this is a big problem? Why or why not?
Yes, people are going into debt and losing homes. In doing this we are producing more homeless people and lowering our job rate. When people have no money they cannot spend it at places of business.
What can be done/is being done to solve this?
To help what is happening they are holding financial literacy seminars to help others get the word out. They are trying to make this available to all people for free.