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Article: Financial literacy and its role in promoting a sound financial system.
- Article from:
- The Reserve Bank of New Zealand Bulletin
- Article date:
- June 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Reserve Bank of New Zealand. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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1 What is financial literacy?
Financial literacy means different things to different people. For some it is a wide-ranging concept, incorporating an understanding of economics and how household decisions are affected by economic conditions and circumstances. For others, financial literacy means focusing quite narrowly on basic money management skills--budgets, savings, investments, insurance.
A consistent theme running through the various definitions of financial literacy involves an individual's ability to acquire essential knowledge and skills in order to make decisions with an awareness of the possible financial consequences. It encompasses being ...