what is the Concept of Financial Literacy ?

       Concept of Financial Literacy

  Financial literacy refer to the ability to  make informed judgments and to take  effective  decisions regarding the use and management of money. It is  associated with the consumer who  has a responsibility  to inform himself of the product he purchase and to understand the contracts he signs with the incorporation of his knowledge, skills and attitude . Financial literacy originates  in developed countries where it has received far more attention than in the developing wold..The basis of financial literacy  is the importance of having the skill and knowledge to make informed financial decisions. The U.S Government Accountability Office (GAO) offers a definition for financial literacy as:

          "The ability to make informed judgement and to take effective actions regarding the current and future use and management of  money . It includes the ability to understand financial choice , plan for the future, spend wisely, and manage the challenges associated with life events such as  a job less, saving for retirement, or paying for a child's education."