Financial Literacy

What is financial literacy?  A financially literate person is one who:

• Understands his or her relationship to money
• Reads about, discussed, and communicates regarding financial issues
• Possesses knowledge of banking and credit
• Practices money management
• Understands the need for protection against unforeseen emergencies
• Plans for major life events
• Saves and invests for the future
• Reads about, discusses, and communicates regarding financial issues
• Knows how and where to find information to make effective personal financial choices

Self-efficacy is the distinguishing characteristic of a financially literate person – a person who has a sense of “I can do this!” when pursuing what he/she believes are attainable financial goals. Our commitment is to provide current and accurate information to you through the links on this site. 

To check your financial literacy, take the Financial Literacy Quiz for Adults or Financial Literacy for High School Students.

Source: Personal Finance and the Rush to Competence: Financial Literacy Education in the U.S., 2000. Institute for Socio-Financial Studies, 2000. Used with permission: L. Vitt, Institute for Socio-Financial Studies, 4/5/01.

    Back to CES Home page