You learn how to do with money in your family, living with your parents and peers. You learn it from the media and in cultural settings that are yours, etc. Your life patterns get reflected in how you manage money. Managing money is one of your habits. Anyway, your financial capacity depends on the income you dispose of.
Are you financially literate?
Let me ask you: How well do you know financial concepts? Do you know i.e., what it means to spread financial risk, what inflation stands for, or what compound interest is? Do you have enough knowledge to manage your money and finances?
At a time when even managing personal money and finances is becoming ever more complicated, many people, upon the advice of acquaintances and even experts, go into self-employment. Many consider being a sole trader attractive, but understanding the balance sheet and everything else beforehand is also necessary!
We consider the transmission of knowledge on how to manage money and the achievement of financial literacy for individuals and households an investment in human capital, as a capability of the population. This knowledge is important for the welfare of citizens and for the design of policies to raise the level of financial literacy. Financial literacy influences important economic decisions. Due to the knowledge acquired about money management and finances, it is possible to plan how to overcome the shortcomings of financial literacy.