The level of financial literacy

Every adult is well-versed in the level of their monthly income. However, as the results of sociological research have shown, only 16% of respondents were able to accurately name the amount of their own regular expenses.

This indicates an insufficient level of financial literacy, without which it is very difficult to achieve material well-being today. How do you learn to manage your family and personal budget rationally and what is financial literacy?

Financial literacy refers to the degree of erudition of a person in terms of the distribution of funds and their management. Such skills make it possible to understand how to properly handle material resources in order to achieve prosperity. Moreover, it is not necessary to have an economic education or work experience in the relevant field.

A high level of financial literacy gives us a lot of opportunities, in particular:

- improving the quality of life and personal development;
- formation of sources of passive income;
- building up personal capital;
- prevention of financial risks and losses.

Individuals who strive to become wealthy and live in prosperity usually adopt the experience of successful people and adhere to the following principles:

- you need to spend less money than you earn;
- having free funds, first of all you need to buy assets — something that brings money, not takes it away;
- each financial income must be divided into several categories: mandatory payments, daily expenses, an airbag and other important goals. For secondary tasks, you should also always leave a certain amount in reserve;
- take into account not only the cost of goods, but also their practicality, so as not to overpay and not spend extra time on purchases;
- borrow or receive loans only in cases when additional funds are extremely necessary or will benefit for the future, use only verified lenders.

The financial well-being of any of us is based on planning a personal (family) budget, finding ways to increase income and minimize costs. This approach allows you to receive additional funds that can be spent on education, self-development and achieving your goals.

According to statistics, over 60% of people around the world are experiencing financial difficulties. The reason for this is an irresponsible attitude to one's own money.

To learn how to consciously and rationally manage material resources, it is worth following a few simple rules. For example: set goals and make plans for their implementation, create a reserve fund in case of unforeseen circumstances, assess risks and try to avoid them.

A financially literate person is evidenced by his beliefs, habits and actions. Firstly, he is able to count his own strength and avoid debt. Secondly, a financially prosperous person takes into account income and expenses, and also always makes plans for a long time (at least 3 years). Thirdly, he has savings, which he tries to multiply using mainly bank deposit accounts or investment instruments. Such a person can make financial decisions independently.

It is these qualities that make it possible to constantly increase the degree of prosperity and in the future become a truly wealthy person. Today, it is not difficult to check your level of financial literacy. There are many special tasks and tests on the Internet that allow you to evaluate logical thinking, mathematical abilities and knowledge in the field of economics. The answers to the questions are online, the user needs to wait a few minutes until the system processes the data and sends the result. It can be measured in percentages or in points, and also usually contains explanations of the answers.