The Benefits of Financial Literacy
One's level of financial literacy affects one's quality of life significantly. It determines one’s ability to provide basic needs, attitude toward money and investment, as well as one’s contribution to the community. Financial literacy enables people to understand and apply knowledge and skills to achieve a lifestyle that is financially balanced, sustainable, ethical, and responsible. Increased personal financial literacy affects one's financial behavior. These changes in behavior pay dividends to society as well. People who work, spend, save, borrow, invest, and manage risk wisely are less likely to require a government rescue. Financial literacy does not totally eliminate the need for a social safety net because even the most prudent individual can encounter financial difficulties. But taking responsibility for one’s financial life cultivates proper decision-making skills and discipline. Most of the responsibility for managing financial matters rests with the individual. That responsibility is easier for adults to bear when they have learned the basics of personal finance in their youth. Financial Literacy in the Philippines
CHAPTER 4 Financial Literacy
|
51
