Understanding basic financial concepts is essential in being able

to navigate today’s financial system. In general, people with

adequate financial literacy tend to make better financial decisions
and are better at managing their money than those with low
financial literacy. In today’s even more demanding world, people
encounter a number of financial issues from a young age, and
even a small misstep early on can be detrimental down the road.
Young adults often find themselves saddled with student loan
debt or credit card debt, which can be difficult holes to climb out
of and can greatly affect their ability to accumulate wealth later in
life. In times of economic downturn or hardship, understanding
how to budget one’s income and being familiar with borrowing
costs can be of utmost importance. The Organisation for
Economic Co-operation and Development (OECD) survey in
2020 showed that three quarters of those surveyed in 26
countries were unable to calculate simple and compound interest
rates. The data also revealed that as much as one third of the
people reported spending more money than they made in the
previous year. Even in money-savvy countries such as Germany,
Italy, and Hong Kong, approximately one in five people had fallen