Final answer:
Tracking habits and gaining knowledge are key to personal financial literacy, which includes understanding concepts like investing, saving, borrowing, and budgeting. Individuals can assess investment options, begin a savings program, maintain a checking account, understand borrowing responsibilities, and develop strategies to become low-risk borrowers.
Step-by-step explanation:
Tracking your habits and gaining knowledge you need to make sound financial decisions are key to personal financial literacy. By understanding financial concepts and developing good money management skills, individuals can make informed decisions about investing, saving, borrowing, and budgeting. For example, individuals can assess investment options, such as developing a personal retirement plan, and learn how to begin a savings program. They can also learn how to maintain a checking account and reconcile bank statements, as well as understand the responsibilities and obligations of borrowing money. Additionally, individuals can develop strategies to become low-risk borrowers by improving and understanding their personal credit score.