Basics of Financial Literacy

Basics of financial literacy include knowing and understanding basic financial concepts and principles that help people manage their personal finances effectively.

Planning income and expenses is one of the basics of financial literacy.​ It allows people to understand where and how they get their income, and what financial obligations they have.​ Knowing your income and expenses allows you to develop a budget and set priorities for spending money.

Understanding credit and insurance products is also important for achieving financial literacy.​ This includes understanding the terms and principles of loans, insurance, and other financial instruments. Knowing these products allows you to make informed decisions and avoid financial risks.

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