What is meant by 'financial literacy' in the context of independent living?

Financial literacy in the context of independent living refers to the ability to understand and manage personal finances effectively. This encompasses a wide range of skills and knowledge necessary for individuals to navigate their financial lives confidently and responsibly. This includes budgeting, saving, investing, managing debt, and understanding financial products and services.

Being financially literate allows individuals to make informed decisions about their money, leading to financial stability and independence, which are key components of successful independent living. It empowers individuals to set and achieve financial goals, prepare for emergencies, and create a sustainable financial future. Understanding personal finances is crucial for anyone seeking to live independently, as it directly impacts their quality of life and overall well-being.