Introduction: The Financial LiteracyCollective

摘要

Financial literacy is a complex concept, encompassing a number ofpersonal abilities related to one’s capacity to make informed financialdecisions in daily life. There are many situations we face during our livesthat require basic financial knowledge and skills to understand and makeinformed financial decisions. For example, we regularly need to manageinflows and outflows of money, possibly budgeting our income andexpenditure. Sometimes we need to borrow money to make an investmentthat we cannot afford on our own. In addition, life often throws financialcurveballs beyond our control which require management by means ofinsurance and protection. Ultimately, we need to plan our future in financialterms, smoothing consumption through savings and financial investments,which requires evaluating the different risks and returns involved.