Financial literacy is the ability to understand and use core money skills — budgeting, saving, managing debt, using credit, and investing — to make confident decisions about your money.
That definition sounds simple, but most people never learn it in school. The result: 64% of US adults can't pass a basic financial literacy quiz, and the average household carries over $6,000 in credit card debt while earning under 1% on their savings.
The five skills that compound the most: (1) Budgeting — knowing where your money goes. (2) Saving — paying yourself first, before bills. (3) Debt — understanding APR and why minimum payments are a trap. (4) Credit — what a credit score is and how to grow it. (5) Investing — letting compound interest do the heavy lifting.
You don't need to master all five at once. Pick one, spend 5 minutes a day on it for two weeks, then move to the next. That's exactly how Welthy is structured — 5 units, 20 lessons, designed so the habit sticks.