Although there are lessons to be learned from trial and error, financial literacy is about managing finances proactively and with intention. Unfortunately, there are many students who enter into adulthood without entirely understanding how to manage their finances properly. Financial literacy is defined as a “meaning-making process”, in which individuals use acquired skills, external resources, and contextual knowledge to accurately process information and make competent decisions in regards to potential consequences of their financial decisions. Setting a realistic budget, responsibly managing credit and debt, saving for unexpected expenses, and learning how to invest will all be important life skills for every young adult to master. Providing children with a thorough understanding of financial literacy at an early age, is vital to ensure proper money management skills later in life.
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