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.

    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.

  2. Understanding The Time Value Of Money

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

  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. Wells Fargo Managing The Slowdown Quite Well

    This is a slow-growth environment for big banks, but Wells Fargo is mangaging the slowdown well.

  5. Cost Discipline Driving The Story At PNC Financial

    If PNC can execute on it cost-cutting initiatves, the value creation could be meaningful

  6. The 8 Most Volatile Sectors

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

  7. Opportunity Cost

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

  8. 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.

  9. 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. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center