Answer:
Financial literacy is a set of skills and knowledge that allows one to make effective decisions with their financial resources.
Step-by-step explanation:
Why is it important? Well, being financially literate ensures financial stability and security. It also allows you to have a variety of different financial skills; such as creating a budget, understanding how credit works, being able to save for retirement, and becoming wiser with how to manage your money.
Hope this helps! Have an amazing day! :D