Investopedia

Continue to Site »

Financial Literacy

Filed Under »
Dictionary Says

Definition of 'Financial Literacy '

The possession of knowledge and understanding of financial matters. Financial literacy is mainly used in connection with personal finance matters. Financial literacy often entails the knowledge of properly making decisions pertaining to certain personal finance areas like real estate, insurance, investing, saving (especially for college), tax planning and retirement. It also involves intimate knowledge of financial concepts like compound interest, financial planning, the mechanics of a credit card, advantageous savings methods, consumer rights, time value of money, etc.
Investopedia Says

Investopedia explains 'Financial Literacy '

The absence of financial literacy can lead to making poor financial decisions that can have adverse effects on the financial health of an individual. The advantages or disadvantages of variable or fixed rates is an example of an issue that will be easier to understand if an individual is financially literate. In 2003, the U.S government launched the Financial Literacy and Education Commission. The office is responsible for having resources available for individuals who want to be financially literate.


Articles Of Interest

  1.

    Understanding The Time Value Of Money

    Find out why time really is money by learning to calculate present and future value.

  2. Investors: You Are Responsible For Your Investments

    Should you leave it all up to your broker or take the reins yourself? Striking a happy medium will provide the best returns.

  3. Variable Annuity Benefits: What The Fine Print Won't Tell You

    Learn the truth before you strap yourself into these annuity "seat belts".

  4. The 8 Most Volatile Sectors

    Volatility often frightens investors. Here are some unstable sectors to watch out for.

  5. Opportunity Cost

    Every action has a cost, even the ones you don't pursue. Find out how this is calculated.

  6. Should You Cut Financials Out Of Your Portfolio?

    Financials have been underperforming the rest of the market. Find out if it's time to dump them.

  7. The Perfect 2011 Investment Portfolio

    No individual picks here, but we'll look at some sectors that are good candidates to provide the greatest returns and top stocks of 2011.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center