PORTRAIT OF A FINANCIALLY LITERATE PERSON

A financially literate person can earn an average market salary, but at the same time be so skillful in managing their money that they have enough for everything.

Financial literacy is not about “going to bed poor and waking up rich”. It is a systematic, conscious work towards personal financial well-being.

Financial literacy is the possession of a set of skills and knowledge that allow a person to make informed and effective decisions using their financial resources.

Financial literacy experts have proposed a “Portrait of a Financially Literate Person”.

You can do a self-analysis by points.

So, a financially literate person:

Can calculate his/her income and expenses (i.e. knows how much money he/she spends per month).

Can plan high-budget expenses (vacations, children’s education, buying an apartment or car), but before doing so, assess whether they are ready for such a financial burden.

Has clearly defined financial goals for a year or several years with a budget.

He/she knows how to save and invest.

Rarely makes rash, emotional purchases, and if this happens, it is strictly within the budget allocated for this purpose.

Has no loans, especially “expensive” ones (loans from microfinance organizations, bank card loans).

He does not consider investing in instruments with very high rates of return because he understands that it is too risky (“pyramid schemes”, dubious earnings on the Internet).

How much did it match?