What Is Financial Literacy?

Dec 16 , 2022 3 min

The first step towards taking charge of your financial life is getting educated about money. According to the American Psychological Association (APA), a study in 2020 concluded that 66% of adults perceive money as a source of stress. What if learning more about the topic relieved this stressor? Crunch is here to make money management simple and accessible to everyone, especially since it is not a skill that is taught at schools or at home.

Learning about finances is called financial literacy: the ability to understand and effectively use various skills, including personal financial management, budgeting, and investment. We live in an increasingly complex world in which economic parameters are continuously changing on a global scale. This is why now it is more important than ever to consider taking charge of your own future. Financial literacy is generally perceived as a challenging subject to learn and has a cultural and societal stigma resulting in people not asking for financial assistance. By increasing awareness and promoting the flow of clear, precise, and useful information, Crunch is here to help alter the public perception and deconstruct the intimidation behind the topic.
 

Financial literacy could empower you to:

√       Learn and recognize common financial terms and concepts.

√       Understand budgeting, spending, and saving.

√       Manage day-to-day finances, debt, and credit. 

√       Become a smart consumer, capable of making big purchases (e.g., house/car). 

√       Build practical investment or savings plans for a sound future.

Increasing your own financial literacy can improve your ability to understand and efficiently manage your money. By doing that, you are gaining control of your finances to eventually start your financial freedom journey. Financial freedom means having enough money in the form of cash and/or investments to do whatever you feel like doing: traveling the world, focusing on your hobbies, or staying at home to watch Netflix and bake bread — whatever makes you happy.

Join the Crunch community today to fast-track your financial goals and attain your dreams sooner.

A strong foundation of financial literacy can help support your life goals, including saving for education or retirement, using debt responsibly, and running a business. Financial literacy incorporates basic financial knowledge, including an understanding of budgets, savings, credit score, net worth, etc. Learn more about the financial lingo from the glossary list that we compiled for you! 

Strengthen your ability to apply this knowledge in making financial decisions today to pave the way for a wealthier tomorrow, with Crunch! 


 

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