Financial Literacy

What is one of the foundational elements of financial literacy mentioned in the passage?

• Investing
• Saving
• Debt management
• Budgeting

Why is savings considered a key component of financial literacy?

What is a critical part of budgeting according to the passage?

• Setting realistic and specific financial goals with a clear timeframe.

• Investing in stocks and bonds.

• Avoiding all forms of credit.

• Spending all income immediately.

Why is understanding credit important for students?

• It helps in building a solid credit history.

• It allows for unlimited spending.

• It eliminates the need for savings.

• It guarantees approval for all loans.

What is an important lesson about banking services mentioned in the passage?

• Understanding the costs associated with ATM transactions.

• Avoiding all banking services.

• Using only cash for transactions.

• Investing all savings in a single bank.