ASHEVILLE, N.C. (828newsNOW) – A solid financial safety net can help individuals navigate the inevitable financial ups and downs of life. Building that safety net starts with developing key financial literacy skills—essential knowledge that anyone can learn and apply with a little effort and the right resources.

What is financial literacy?

Financial literacy refers to understanding how to earn, manage and invest money. This foundational knowledge increases the likelihood that individuals will make informed financial decisions, setting themselves up for long-term financial success and economic stability. It is making smart decisions early on to hedge against market instability.

Why Is financial literacy so important?

The importance of financial literacy goes far beyond theory. It is not just about knowing how money works—it is about applying that knowledge in everyday life. People with stronger financial literacy skills are significantly more likely to achieve financial wellness. Financial literacy sets up personal safety nets for hard times. Keeping an emergency savings account, for example, can protect families from being unable to pay medical bills or vehicle repairs. Emergency savings accounts also prevent using retirement money early on everyday problems.

What are the benefits of financial literacy?

Everyday money decisions—from choosing a bank account to selecting the right credit card—are easier to navigate with strong financial literacy. Financially literate individuals can:

  • Choose bank accounts that fit their needs, including high-yield savings accounts, checking accounts and more specialized financial products.

  • Make smart decisions when selecting credit cards, balancing options such as low APR, no annual fee, cash-back rewards, travel perks, or balance transfer offers.

These decisions, although routine, are critical steps toward smarter money management and long-term financial planning. Research how to budget, make wise investments, create savings accounts and borrow money in smart ways to begin a financial literacy journey worth every penny.