The biggest difference between financial success and financial failure is the management of money. In today’s economy and generation, the one problem we face is the lack of financial literacy. Financial literacy is just as important in life as other basics.

Financial literacy is important because it helps us understand how wealth is built, spent, and saved as well as the skills and ability to use financial resources to make informed decisions both in business and personal life. The following are tips you should know on financial literacy:

1. Prepare a realistic budget: Have a spending plan that is based on your expenses and income. By having a budget, you take control of your spending habits, rather than letting your spending habits control you.

2. Be organized. Organizing your finances help to ensure that you are spending money on what matters the most to you. To avoid wasteful spending, you keep track of your income, monthly bills, and daily expenses.

3. Have a plan: A written plan helps you stay on track in achieving your day to day and month to month financial goals. Maintaining a spending plan can’t eliminate all your debt, but it will help to minimize unnecessary debt and any unplanned and impulse purchases.

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