Saving for your education. Buying your first house. Managing your credit. Planning your retirement. These are all life skills that empower you as a consumer. Just as being able to read opens a world of possibilities, financial literacy enables you to better understand financial matters on both a personal and large scale. It empowers you to apply that knowledge and assume responsibility for financial decisions now and in the future (Financial Consumer Agency of Canada, 2017).
"Financial Empowerment is the process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions. Financial empowerment therefore is the transfer of personal money power i.e. financial independence to an individual" ("What is", n.d.).
"Financial Literacy is the education and understanding of various financial areas. It focuses on the ability to manage personal finance matters in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting, retirement and tax planning." ("Financial literacy," n.d., para. 1-2).
"Personal Finance is the science of handling money. It involves all financial decisions and activities of an individual or household – the practices of earning, saving, investing and spending. Matters of personal finance include the purchasing of financial products, like credit cards, life and home insurance, mortgages and various investments" ("Personal finance," n.d., para. 10-11).