“Financial literacy” means having the knowledge, skills and confidence to make responsible financial decisions. Within that definition,
- Knowledge refers to an understanding of personal and broader financial matters;
- Skills refer to the ability to apply that financial knowledge in everyday life;
- Confidence means having the self-assurance to make important decisions; and
- Responsible financial decisions refers to the ability of individuals to use the knowledge, skills and confidence they have gained to make choices appropriate to their own circumstances.