What Does It Mean To Be Financially Literate?

What does financial literacy mean?

The definition of financial literacy can vary a bit depending on the source, but it almost always centers on having the skills and knowledge necessary to make informed decisions regarding your financial resources. For the average consumer, knowing how to maintain a balanced checking account and understanding interest, credit ratings and loan terms are foundational elements of financial literacy. Consumers should also strive to ensure they are financially literate regarding their retirements, ensuring they have plans for the future and are aware how those plans are being managed.

— Shaun McGee, vice president of financial services, AAA Northeast

The AAA Deposit Program has a variety of products to help financially literate folks like you make the most of your money. Click here for more. 

Expand your financial literacy by reading more about savings accounts, then leave us a comment about how you fill the piggy bank.