Financial literacy means knowing how to manage money in a smart way. It is about understanding the basic things we need in our daily life, such as how to earn, spend, save, borrow, and invest money. A person with financial literacy has the knowledge and skills to make good decisions about money. This is important because money affects almost every part of our lives.
Many people earn money but do not know how to use it well. For example, some people spend all their income quickly and then face problems when they have an emergency. Others take loans without understanding how interest works, and later they find it difficult to pay back. Financial literacy helps us avoid these problems.
Being financially literate does not mean being rich. It means being wise with the money you already have. It is about planning your expenses, saving a part of your income, and avoiding unnecessary debt. For example, if you know how to prepare a monthly budget, you can control your spending. If you save a small amount every month, you will have money for the future.
Financial literacy also includes knowing about banks, credit cards, and insurance. It teaches us how to use these services safely. When we know how to read the terms of a loan, we can understand the risks before signing. When we know about saving accounts or fixed deposits, we can make our money grow little by little.
Another part of financial literacy is protecting yourself from fraud. Today, many people use online banking and digital payments. Without basic knowledge, people can easily become victims of scams. Learning simple safety steps, such as not sharing your PIN, is part of financial literacy.
Schools, workplaces, and families all have a role in teaching financial literacy. Young people should learn about money management from an early age. Adults should keep learning about new financial tools and opportunities.
In the end, financial literacy is about freedom and security. When you know how to manage your money, you have less stress and more confidence. You can plan for your children’s education, your health needs, or your retirement. Financial literacy is not only for bankers or business people. It is for everyone.
සිංහල ලිපියට සබැඳිය පහළින්
