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Ket [755]
3 years ago
10

A lack of financial literacy can cause you to lose your

Computers and Technology
1 answer:
Marianna [84]3 years ago
4 0

Answer:

Financial literacy of someone's ability to understand and apply financial skills, including budgeting, financial management, investing and risk calculation. However, lack of financial literacy may result in opposite of having financial literacy.

Explanation:

Financial literacy of someone's ability to understand and apply financial skills, including budgeting, financial management, investing and risk calculation. Financial literacy helps individuals in taking financial decisions in achieving self-sufficient financial stability.  Financial literacy is the skill of someone about making financial decisions. This skill can help a person to develop a financial roadmap about what he earns, how he will earn, what he spends and what he saves and owes.

Lack of financial literacy can cause to loose your:

  • making effective financial planning
  • making the right decision about budgeting
  • ability to calculate interest
  • understanding the time value of money.

Financial illiteracy can cause you to lose your money or become victims of predatory lending, fraud, subprime mortgages, paying high-interest rates, bankruptcy or potentially resulting in bad credit.

The lack of financial literacy can lead to owing large amounts of debt and making poor financial decisions. For example, the advantages or disadvantages of fixed and variable interest rates are concepts that are easier to understand and make informed decisions about if you possess financial literacy skills.

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